Now that 2025 is in full swing and tax season is coming up, it's a great time to talk about the benefits of the Work Opportunity Tax Credit (WOTC).
WOTC is a federal tax credit incentive program, provided to employers for hiring individuals from certain target groups. By participating in WOTC, you not only expand your talent pool but also benefit from tax incentives, making it a win-win situation for your business and the community.
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.
Did you know?
- Through WOTC, most target groups' maximum credit is $2,400.
- To learn more about the WOTC and access an on-line application, click here.
For additional information about the program including frequently asked questions, click here.
Employer workshops and hiring events may also target untapped, vulnerable populations and generate interest in the WOTC. To learn the benefits of accommodating, hiring and retaining individuals with disabilities, contact Ben Baldonado at (435) 414-5461 or Joshua Rodeback at (385) 266-0509.
Need help recruiting?
Watch this video to see how Workforce Services helped Big-D Construction create a youth internship program to build its workforce.