We Can Help
work opportunity tax credit
Work Opportunity Tax Credit (WOTC) is a Federal tax credit available to employers for hiring individuals from eligible target groups who have had difficulty securing employment. Those eligible target groups can 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 Counties)
- Vocational Rehabilitation Referred Individuals
- Supplemental Security Income Recipients
- Summer Youth Employees (living in Empowerment Zones)
- Long-Term Unemployed (for those hired after December 31, 2015)
By hiring qualified individuals from these groups, private sector
- Receive tax credits between $2,400 to $9,600 per eligible employee
- Claim tax deductions for qualified full-time, part-time, and temporary employees
- Reduce overall tax liability and labor costs
How Much Credit Can the Business Earn?
Businesses can earn a tax credit equal to 25% or 40% of a new employee’s first year wages, up to the maximum for the target group to which the employee belongs.
The breakdown for consolidated WOTC for hiring target group members is itemized as follows:
- $2,400 for each new adult hire
- $9,000 for each new long-term family assistance recipient hired over a two-year period
- $9,600 for each new disabled veteran hire
HOW WE CAN HELP
With Kwantek’s OnBoarding solution, all WOTC screening is collected from the candidate during the OnBoarding process:
- An integrated questionnaire is available in English or Spanish and is given to any new or existing eligible employee. Kwantek can provide look back help to ensure all of your eligible employees are accounted for.
- Once completed, the screening completes forms 8850 and 9061.
- Forms are prepared for processing and state certification.
- You are notified which supporting information is needed to supply to state departments.
- All documents are organized and stored online.
The Department of Labor has been granted an extension on filing WOTC forms through August 31, 2018. Current Forms ETA 9061, 9062, and 9063 have all been extended without revisions so that employers can file for eligible new hires until then.
We have helped many of our existing customers to use this feature in our OnBoarding Solution.
If you have not used the WOTC feature, we will be your trusted partner through every step of the process. No matter how many applications you turn in, you are only charged for qualifying credits.
Contact us today to ensure you are receiving all of the credits for eligible employees within your organization.