{"id":925,"date":"2025-04-03T16:57:56","date_gmt":"2025-04-03T16:57:56","guid":{"rendered":"https:\/\/www.westevens.com\/blog\/?p=925"},"modified":"2025-04-03T17:35:36","modified_gmt":"2025-04-03T17:35:36","slug":"wotc-tax-credit","status":"publish","type":"post","link":"https:\/\/www.westevens.com\/blog\/wotc-tax-credit\/","title":{"rendered":"Hiring? You Could Be Eligible for a $9,600 Tax Credit"},"content":{"rendered":"

If your business is hiring this year, don\u2019t overlook the Work Opportunity Tax Credit (WOTC)<\/strong>\u2014a valuable federal tax incentive that can help you reduce your tax bill by up to $9,600 per qualified hire<\/strong>.<\/p>\n

What is the WOTC?<\/h3>\n

The WOTC is a federal income tax credit available to employers who hire individuals from certain \u201ctarget groups\u201d that face significant barriers to employment. This program benefits both your bottom line and the broader economy by encouraging inclusive hiring.<\/p>\n

Who Qualifies?<\/h3>\n

The IRS defines a number of eligible target groups, including:<\/p>\n

    \n
  • Veterans<\/strong> (especially those with service-connected disabilities or long-term unemployment)<\/li>\n
  • SNAP (food stamp) recipients<\/strong><\/li>\n
  • TANF recipients<\/strong><\/li>\n
  • Ex-felons<\/strong><\/li>\n
  • Vocational rehabilitation referrals<\/strong><\/li>\n
  • Long-term unemployed individuals<\/strong><\/li>\n
  • Summer youth hires<\/strong> in designated empowerment zones<\/li>\n<\/ul>\n

    The exact credit amount depends on the employee category, the number of hours worked, and wages earned in their first year.<\/p>\n

    \n\n\n\n\n\n\n\n\n\n
    Target Group<\/th>\nMax Credit Amount<\/th>\n<\/tr>\n<\/thead>\n
    Qualified veterans<\/td>\nUp to $9,600<\/td>\n<\/tr>\n
    SNAP recipients<\/td>\nUp to $2,400<\/td>\n<\/tr>\n
    Long-term unemployed<\/td>\nUp to $2,400<\/td>\n<\/tr>\n
    Ex-felons<\/td>\nUp to $2,400<\/td>\n<\/tr>\n
    Summer youth (empowerment zones)<\/td>\nUp to $1,200<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

    How to Claim the Credit<\/h3>\n

    Timing is everything. To take advantage of the WOTC, employers must follow a specific certification process:<\/p>\n

      \n
    1. Pre-screen<\/strong> applicants for eligibility (typically during onboarding).<\/li>\n
    2. Submit IRS Form 8850<\/strong> and ETA Form 9061<\/strong> (or 9062) to your state workforce agency.<\/li>\n
    3. Deadline:<\/strong> Forms must be submitted within 28 calendar days of the employee\u2019s start date<\/strong>.<\/li>\n
    4. Once certified, the credit is applied against your income tax liability.<\/li>\n<\/ol>\n

      Unfortunately, if the 28-day deadline is missed, the credit cannot be claimed.<\/strong> That’s why it\u2019s crucial to make WOTC screening part of your new hire process.<\/p>\n

      How to Make It Easier<\/h3>\n

      Many employers automate this process using their payroll provider or a WOTC service vendor. These tools can handle screening, submission, and tracking, helping you stay compliant and claim every eligible credit.<\/p>\n

      Final Thoughts<\/h3>\n

      With hiring costs on the rise, the WOTC offers a meaningful way to save money while creating opportunities for those who need it most. If you’re planning to expand your team, don\u2019t leave this credit on the table.<\/p>\n

      Need help navigating the forms or identifying qualified hires? Our team can help you set up a compliant process or coordinate with your payroll provider.<\/p>\n

      Want to talk WOTC with a tax expert? Let\u2019s chat today.<\/strong>
      \ud83d\udcf2 Call (402) 932-8815<\/p>\n

      Sincerely,
      \nW. E. Stevens, PC
      \nServing you through a thoughtful client experience, wise long-term perspective, and very experienced staff<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

      If your business is hiring this year, don\u2019t overlook the Work Opportunity Tax Credit (WOTC)\u2014a valuable federal tax incentive that can help you reduce your tax bill by up to $9,600 per qualified hire. What is the WOTC?<\/p>\n","protected":false},"author":2,"featured_media":926,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[10,12],"tags":[7,17,83,85,66,84,82],"_links":{"self":[{"href":"https:\/\/www.westevens.com\/blog\/wp-json\/wp\/v2\/posts\/925"}],"collection":[{"href":"https:\/\/www.westevens.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.westevens.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.westevens.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.westevens.com\/blog\/wp-json\/wp\/v2\/comments?post=925"}],"version-history":[{"count":4,"href":"https:\/\/www.westevens.com\/blog\/wp-json\/wp\/v2\/posts\/925\/revisions"}],"predecessor-version":[{"id":930,"href":"https:\/\/www.westevens.com\/blog\/wp-json\/wp\/v2\/posts\/925\/revisions\/930"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.westevens.com\/blog\/wp-json\/wp\/v2\/media\/926"}],"wp:attachment":[{"href":"https:\/\/www.westevens.com\/blog\/wp-json\/wp\/v2\/media?parent=925"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.westevens.com\/blog\/wp-json\/wp\/v2\/categories?post=925"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.westevens.com\/blog\/wp-json\/wp\/v2\/tags?post=925"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}