Ever wonder how you can save money for your company? Here's one way, in four words: Work Opportunity Tax Credit. If you aren't getting it, you're losing out.
What is the Work Opportunity Tax Credit, also known as WOTC? According to the US Department of Labor, the WOTC "is a Federal tax credit available to employers for hiring individuals from certain target groups who have consistently faced significant barriers to employment." These target groups include:
- Unemployed or disabled veterans
- Long-term unemployed (at least 27 consecutive weeks and receiving unemployment benefits)
- Temporary Aid to Needy Families (TANF) recipients
- Food stamp (SNAP) recipients
- Supplementary Security Income (SSI) recipients
- Residents of Empowerment Zones or Rural Renewal Counties
- Vocational Rehabilitation-referred individual
- Summer youth employees residing in an Empowerment Zone
Have you hired anyone from any of these categories? If the answer is "yes" for 2015, act now to ensure you're getting your tax credit. If you are uncertain, don't worry, we can help you figure that out at no cost to you. Fortunately, if you haven't already claimed a credit for this year, you have until June 30, 2016. Don't assume you can procrastinate next year, however. This grace period is going away.
As of July 1, 2016, you must claim your WOTC within the first 28 days of an eligible hire. So don't delay.
Don't think this opportunity is worth the trouble? Think again. You can earn back as much as $2,400-$9,600 on your tax credit.
Need help navigating the WOTC? Drop us a line.