SureAdvisors

Sign Up

Work Opportunity Tax Credit (WOTC)

Boosting Your Bottom Line Through Strategic Hiring

post-image

At SureAdvisors, we specialize in helping businesses like yours maximize tax savings through strategic programs like the Work Opportunity Tax Credit (WOTC). Our expert team will guide you through the process of leveraging this valuable incentive to reduce your tax liability while promoting diverse and inclusive hiring practices.

What is the Work Opportunity Tax Credit?

The Work Opportunity Tax Credit is a federal tax credit available to employers who hire individuals from certain targeted groups that have consistently faced significant barriers to employment. This program incentivizes workplace diversity and helps individuals from disadvantaged backgrounds enter the workforce.

Key Benefits:

Substantial reduction in federal tax liability
Promotes diversity and inclusion in the workplace
Supports community development by providing job opportunities
No limit on the number of eligible individuals an employer can hire

Who Qualifies for the WOTC?

Employers can claim the WOTC for hiring individuals from the following target groups:

Veterans
TANF (Temporary Assistance for Needy Families) Recipients
SNAP (Food Stamp) Recipients
Designated Community Residents
Vocational Rehabilitation Referrals
Ex-Felons
Supplemental Security Income Recipients
Summer Youth Employees
Long-Term Unemployment Recipients

How Much Can Employers Save?

The tax credit amount varies depending on the target group of the individual hired, the wages paid to that individual, and the number of hours that individual worked during the first year of employment. Generally, the credit can range from $1,200 to $9,600 per eligible employee, with a maximum of $2,400 for most target groups.

The SureAdvisors Approach to WOTC

We offer a comprehensive, streamlined process to help you maximize your WOTC benefits:

Eligibility Screening: We implement efficient systems to screen all new hires for WOTC eligibility.
Documentation and Certification: Our team handles all necessary paperwork and submits it to the appropriate state workforce agencies within the required timeframe.
Credit Calculation: We accurately calculate the credit amount for each eligible employee.
Tax Form Preparation: We prepare all required tax forms to claim the credit on your tax return.
Ongoing Compliance: We ensure continued compliance with WOTC regulations and keep you updated on any program changes.

Frequently Asked Questions

Does hiring relatives qualify for the WOTC?

No, the WOTC does not apply to wages paid to an employee who is related to the employer or who owns more than 50% of the business.

How long do I have to file for the WOTC after hiring an eligible employee?

Employers must submit Form 8850 to their state workforce agency within 28 days of the eligible employee's start date.

Can the WOTC be carried forward or back?

Yes, the WOTC can be carried back one year and forward up to 20 years if it can't be fully used in the current tax year.

Does the WOTC affect the wage deduction I can take for an employee?

Yes, the amount of your wage deduction must be reduced by the amount of the WOTC for that employee.

Can I claim the WOTC for part-time employees?

Yes, part-time employees can qualify for the WOTC, but the credit amount may be less than for full-time employees due to lower wages.

Ready to enhance your hiring practices and reduce your tax liability with the Work Opportunity Tax Credit? Contact SureAdvisors today for a comprehensive consultation. Let us show you how to integrate WOTC into your hiring strategy and maximize your tax savings.