Let Us Handle Your Tax Credit: Download Our WOTC Update Brief!
Are you one of them?
Big Financial Rewards for Hiring WOTC-Qualified Employees
WOTC provides a tax credit up to $9600 for businesses that hire qualified employees from any of the target groups.
People in the groups listed below often face barriers to employment and may qualify you for WOTC:
- TANF recipients
- SNAP recipients
- SSI recipients
- Long-term unemployment
- Designated community and
empowerment zone residents
- Vocational rehabilitation
How Large Is The WOTC Tax Credit?
You get a tax credit up to $9,600 for each new hire who is WOTC certified and works the required minimum hours or days for their group.
The credit is calculated as a percentage of wages paid.
Example WOTC Tax Credit
Target Group: Disabled Veteran
Wages Earned: $24,000
Hours worked: 400+
Receive Your Tax Credits With SwipeClock’s WorkforceHUB
Get all the credit you deserve without any of the work by making WOTC screening part of your standard hiring process.
Why WorkforcHUB For WOTC?
WorkforceHUB onboarding steps new hires through a series of questions to verify WOTC eligibility.
Opt In The New Hire With A Click
WorkforceHUB has a built-in WOTC questionnaire as part of the onboarding workflow. With one click, you decide whether to include the questionnaire with other new-hire documents.
SwipeClock WorkforceHUB partners handle all the paperwork and filing for WOTC. You only pay a small fee if you receive a credit.
IRS forms are completed and submitted along with supporting documentation to your State Workforce Agency on your behalf. (WOTC is a federal program administered on the state level.)
WorkforceHUB takes the effort out of earning tax credits with WOTC.
WorkforceHUB WOTC Filing Benefits
- No-hassle way to earn your maximum tax credits
- WOTC certification taken care of for you
- No cost unless you get the credits
- Regular tracking and reporting for easy tax credit
What Types of Businesses Qualify?
There are no restrictions on business type or industry. (That means your business qualifies!)
Can Non-Profits Claim WOTC?
Non-profits can claim WOTC against Social Security taxes.
What Is The Average Credit Per Employee?
The average WOTC credit is about $1200 per employee. The maximum credit is over $9,000 if all conditions are met.
What’s The Most Important Thing To Know?
When you hire an employee that might qualify, don’t delay. You need to submit the form within 28 days of their first day of work.
If you use WorkforceHUB for WOTC, you don’t have to worry about the deadline.
Can I Carry Forward Unused WOTC?
Yes, WOTC rules are the same as the rules for general business credits.
The Credit Varies Per Target Category
The amount of the WOTC credit varies according to target group. Some groups qualify you for a 25% credit. Other groups qualify you for a 40% credit.
The number of hours the employee works during the year also influences the size of the credit. You can qualify for a 25% credit if the employee worked at least 120 hours. This increases to 40% if the employee worked 400+ hours.
What Does The Employee Get?
The employee gets a fantastic job at your outstanding company. You get the tax credit. The status of the employee as a member of a target group creates your company’s eligibility for the credit.
It’s a win-win! You provide employment to a person who may otherwise have difficulty finding a job. The employee gets a steady paycheck. You get a credit on your business taxes.
What’s not to like?
By Liz Strikwerda
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