Work Opportunity Tax Credit

What Is The Work Opportunity Tax Credit?

The Work Opportunity Tax Credit (WOTC) is a federal income tax credit that rewards employers for hiring individuals from certain groups who have consistently faced significant barriers to employment.

It has a reputation of being too difficult to administer.  It’s not! These credits are significant if you are a company that fits the hiring and industry profile below.

WOTC Hiring Target Groups

  • Certain SNAP (Food Stamp) recipients
  • Certain TANF recipients
  • Certain Ex-Felons
  • Certain SSI recipients
  • Certain Veterans
  • Certain Long-term Unemployed

Industries Where WOTC Is Popular

  • Fast Food Franchises
  • Grocery Stores
  • Staffing Services
  • Hospitals and Nursing Homes
  • Manufacturing
  • Restaurants & Hotels
  • Telemarketing Firms
  • Janitorial Staffing
  • Those that hire a significant number of people near minimum wage
  • Those that hire a significant number of people on public aid or welfare

How Much Would My Company Get?

If you hire 100 people a year on average, you can estimate a range of $7,200 – $16,000 in credits.  Here’s how:

Scenario #1 (Best possible case)
10 (10%) are WOTC eligible and earn at least $4,000 in their first year
10 x $4,000 x .40 = $16,000 tax credit per year

Scenario #2 (A more conservative estimate)
Six (6%) are WOTC eligible and earn $3,000 in their first year
6 x $3,000 x .40 = $7,200 tax credit per year

How You Get These Credits

R. Jeffrey & Associates, Inc. provides you two effective paths to success, either by way of a web-based e-survey, or a paper-based system, depending on what works best for you. You simply insert one additional step into your existing hiring process to gather this information.

R. Jeffrey & Associates, Inc. does 95% of the work to get the WOTC for you.  We provide guidance, follow up reminders and progress status reports free of charge. Your company’s tax department and your CPA can count on us to provide you with timely reporting to substantiate your WOTC credits.

What's The Next Step?

Have a live conversation with an expert at R. Jeffrey & Associates, Inc. to see if you qualify.  Our goal is to have you understand how WOTC works, and if it’s worth it for you.

Please call us at 847-813-6622. We look forward to speaking with you.

Want to find out how much credit you are leaving unclaimed each year?