Business Incentive Solutions

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WOTC - WORK OPPORTUNITY TAX CREDIT

WOTC credit has multiple benefits

For workers: The WOTC helps remove barriers to hire by helping to offset the cost of hiring and training.


For Employers: Organizations can reduce their tax liabilities, impacting their bottom-line and allowing them to invest further resources in their company and employees. Employers also gain access to great employees who are proven to perform as well as their peers.


For the community: The WOTC boosts the economy by reducing unemployment rate and reducing individuals’ dependency on government assistance programs funded by taxpayers.

FEDERAL WOTC HIRING CREDIT

The Federal WOTC (Work Opportunity Tax Credit) tax credit is available to all employers who hire and retain individuals from specified target groups. Employers can claim about $1 billion in tax credits each year under the WOTC program. There is no limit on the number of individuals an employer can hire to qualify to claim the tax credit. Under this program, employers can claim a tax credit on their federal taxes for each qualifying new hire. The amount of the tax credit is based on the amount of wages paid to each eligible worker.

Credits range from $2400 - $9600 per employee. Employers cannot claim this Federal Tax Credit for their relatives, former employees or undocumented workers.

Also, each eligible worker must be employed for at least 120 hours in order for the employer to claim the tax credit. If the new hire has another job at the time hired by the requesting employer, but otherwise meets the eligibility criteria, then the new employer can claim the tax credit. There is a 28 DAY window to file all documentation. This credit is no longer available to the employer after the deadline has passed. 


DOCUMENTATION MUST BE SUBMITTED TO OUR OFFICE IMMEDIATELY AFTER THE EMPLOYEE IS HIRED.

WOTC employer brochure here

BIS understands all Federal and State guidelines for your company to obtain eligible tax credits.