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

Webinar: Unlocking the Potential for Multi-Unit Franchise Owners

In this interview, Jeff shares his extensive experience with the WOTC, revealing how this pivotal program has significantly impacted businesses by fostering growth and profitability through strategic tax credit acquisition.

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

From there, R. Jeffrey Tax Credits does the administrative work to get the WOTC results for you. You simply insert one additional step into your existing hiring and onboarding process to gather this information.

R. Jeffrey Tax Credits 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 Tax Credits 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?