Tax Incentives for Hiring

With 2023 well underway and tax day approaching, you may be interested in how the Work Opportunity Tax Credit (WOTC) can benefit your business.

Many employers continue to struggle to find talent to meet their workforce needs and WOTC provides incentives for hiring untapped labor pools. Populations associated with these tax credits typically face significant barriers to employment and may be the talent needed to meet your workforce needs. As employers, you should know about this hiring incentive.

A federal tax credit incentive program, WOTC was created in 1996 by Section 1201 of the Small Business Job Protection Act allowing for-profit employers to claim a tax credit against their federal income tax liability for hiring members of seven specifically designated groups (P.L. 104-188). Fast forward to the present day, WOTC provides tax incentives for 10 targeted groups.

WOTC Targeted Populations. Qualified family assistance recipient. Qualified veteran. Qualified individual with a criminal background. Designated community resident. Vocational rehabilitation referral. Summer youth employee. Supplemental Nutrition Assistance Program recipient. Supplemental Security Income recipient. Long-term family assistance recipient. Qualified long-term Unemployment recipient.

WOTC Targeted Populations. Qualified family assistance recipient. Qualified veteran. Qualified individual with a criminal background. Designated community resident. Vocational rehabilitation referral. Summer youth employee. Supplemental Nutrition Assistance Program recipient. Supplemental Security Income recipient. Long-term family assistance recipient. Qualified long-term Unemployment recipient.

Infographic: January 2023 Unemployment Rate in Utah is 2.4%. In U.S. the rate is 3.3%. Job growth in Utah is 2.8% and in U.S. is 3.4%. Average weekly initial unemployment insurance claims were 2,157. Initial unemployment insurance claims change was 22.9%.

You can receive up to $9,600 in tax credit and extend a hand up to individuals by hiring those who:

Have served our country
Face the challenges of poverty
Have a criminal record
Are looking for work and close to exhausting their unemployment insurance benefits
Are inexperienced youth looking for summer employment
Have a disability and are receiving Social Security Income

In doing so, you may be eligible to receive a tax credit for qualifying individuals through WOTC. The Department of Workforce Services is here to help guide you through the process.

To learn more about the WOTC and access an on-line application, click the button below.

APPLY FOR WOTC

For additional information about the program including frequently asked questions, click here.