As a business leader, you’re always looking for ways to maximize resources while making a meaningful impact. The Work Opportunity Tax Credit (WOTC) offers a unique opportunity to achieve both. This federal tax credit rewards businesses for hiring individuals from specific groups that often face barriers to employment—helping your bottom line while contributing to workforce inclusion.

Let’s explore how WOTC works and how it can benefit your business.

What Is the Work Opportunity Tax Credit (WOTC)?

WOTC is a federal program designed to incentivize employers to hire individuals from targeted groups, including:

• Veterans transitioning to civilian life.
• Individuals receiving public assistance, such as SNAP benefits.
• People with disabilities.
• Ex-felons re-entering the workforce.
• Long-term unemployed individuals.

For each eligible hire, your business can earn a tax credit ranging from $2,400 to $9,600, with some businesses achieving much higher savings based on their hiring volume and workforce needs.

Why WOTC Is a Smart Business Strategy

1. Reduce Tax Liability
   Unlike tax deductions, which lower taxable income, WOTC is a dollar-for-dollar reduction in the taxes you owe. That means real savings that can be reinvested into your business operations or growth initiatives.
2. Enhance Workforce Diversity
   A diverse workforce is more innovative, adaptable, and reflective of the communities you serve. WOTC encourages you to tap into a broader talent pool, enriching your team with new perspectives.
3. Support Economic Growth
   By hiring from underrepresented groups, your business contributes to workforce inclusion, helping individuals achieve financial stability while strengthening the local economy.
4. Attract Top Talent
   Offering employment opportunities to individuals in need can also enhance your employer brand. Prospective employees are drawn to companies that demonstrate a commitment to social responsibility.

Getting Started with WOTC

The process for claiming WOTC is straightforward with the right resources in place. Here’s how to begin:

1. Identify Eligible Candidates
   During the hiring process, determine whether your candidates meet the criteria for one of WOTC’s targeted groups.
2. Submit Form 8850
   This IRS form must be completed and submitted to your State Workforce Agency within 28 days of the employee’s start date.
3. Track and Maximize Credits
   Partnering with a service like WOTC.com simplifies the process, from screening candidates to filing necessary paperwork. Their expertise ensures you don’t miss out on any potential savings.

Real Impact for Real Businesses

Businesses across the country are seeing the benefits of WOTC:

• Retailers have saved hundreds of thousands in tax credits while filling essential roles.
• Transportation companies have strengthened their teams and reduced turnover.
• Small businesses have gained much-needed financial relief during challenging times.

No matter your industry, WOTC can be a valuable tool for optimizing your hiring strategy and reducing costs.

A Win-Win for Your Business and Community

WOTC is more than a tax credit; it’s a way to align your business goals with your values. By offering opportunities to individuals who need them most, you’re driving positive change while reaping tangible financial rewards.

If you’re ready to explore how WOTC can benefit your business, consider partnering with WOTC.com. Their team provides a seamless experience, handling everything from candidate screening to tax credit filings. With their help, you can focus on growing your business while maximizing your savings.