According to the United States Department of Labor, employers generally can earn a tax credit equal to 25% or 40% of a new Work Opportunity Tax Credit (WTOC) eligible employee. Does your organization take advantage of this opportunity? WOTC was enacted by the federal government to promote the hiring of certain targeted demographic groups that typically have challenges gaining employment. The program assists employers by offering federal tax credits up to $9,600 per eligible employee.
Eligible target groups include:
- Unemployed veterans, including disabled veterans
- Temporary Assistance for Needy Families (TANF) recipients
- Food stamp (SNAP) recipients
- Designated community residents (living in Empowerment Zones or Rural Renewal Communities)
- Vocational rehabilitation referred individuals
- Supplemental security income recipients
- Summer youth employees (living in Empowerment Zones)
- Qualified long-term unemployment recipient
Our printable reference guide helps employers quickly determine who is eligible so employers can better manage their organization’s WOTC program.
Contact us to learn more about best practices and how Equifax delivers a comprehensive WOTC Management service that helps employers reduce federal tax liability through the WOTC program.
The post Do You WOTC? Target Groups for the WOTC Opportunity Tax Credit appeared first on Insights.