No upfront costs.
Each qualified hire is worth $1,200 to $9,600 in tax credit.
We make it EASY for YOU!
HOW DOES THIS WORK?
We add easy WOTC screening to your hiring process
New hires confidentially answer WOTC questions
WOTC Planet Does the rest!
Frequently Asked Questions
WOTC is pronounced Watt-See. It is an acronym that stands for Work Opportunity Tax Credit.
The Work Opportunity Tax Credit or WOTC is a federal income tax credit earned by US employers. The amount of tax credit earned is based on the amount of wages the employer pays to one or more qualifying employees.
Eligibility is based on an employee’s circumstances at the time of hire and prior to hire. The most important thing to understand, however, is that eligible employees are regular everyday people that most employers already hire on a regular basis. There are currently 10 categories or "Target Groups" of eligible employees. If you count the subcategories of Target Group B (qualifying veterans), you could say that there are 14 categories. Before an employer can claim a tax credit, they will receive a certification letter from their state workforce agency .
Here is the basic list. The tax credit amount shown is the maximum possible per qualifying employee under that category.
| Maximum Tax Credit |
Target Group |
| A $2,400 |
Member of a Family Receiving TANF (Short Term) |
| B-a $2,400 |
A veteran who is a member of a family receiving SNAP (food stamps) |
| B-b $4,800 |
A disabled veteran (service related) eligible for disability compensation, who was discharged or released from active duty within the past year |
| B-c $9,600 |
A disabled veteran (service related) eligible for disability compensation, who was unemployed at least 6 months during the past year |
| B-d $2,400 |
A veteran who was unemployed for at least 4 weeks but less than 6 months during the past year |
| B-e $5,600 |
A veteran who was unemployed for at least 6 months during the past year |
| C $2,400 |
Qualified Ex-Felon – An individual convicted of a felony within the past year or who was released within the past year after a period incarceration stemming from a felony conviction |
| D $2,400 |
Designated Community Resident – and individual of age 18 through 39 who lives within the boundaries of a federal Empowerment Zone or Rural Renewal County. |
| E $2,400 |
Qualified Vocational Rehabilitation Referral – Someone who has a physical or mental disability who has received (or is receiving) rehabilitative services provided by: A state-certified agency, OR An Employment Network under the Ticket to Work program, OR The U.S. Department of Veteran Affairs. |
| F $2,400 |
Qualified Summer Youth Employee – Someone age 16 or 17 at the time of hire, who lives in a federal Empowerment AND works for the employer between May 1 and September 15. |
| G $2,400 |
SNAP (Food Stamps) Recipient – Someone between the ages of 18 and 39, who is a member of a family that received SNAP benefits (Supplemental Nutrition Assistance Program) during the 6 months prior to hire OR during at least for 3 of the last 5 months but is no longer eligible for SNAP. |
| H $2,400 |
Supplemental Security Income Recipient – Someone who received Supplemental Security Income (SSI) benefits for any month that ended during the 60-day period before hire. |
| I $9,600 |
Member of a Family Receiving TANF (Long Term) |
| L $2,400 |
Long Term Unemployment Recipient – Someone who was unemployed for at least 27 consecutive weeks until the date of hire AND received unemployment insurance compensation at any time during their period of unemployment. |
Is Something Valuable Missing from Your Hiring Checklist?
Most human resources departments use a checklist when hiring new employees. Lists are so important, whether they are printed on paper or managed electronically by a paperless onboarding system. Lists help us to consistently and fairly walk new workers through a litany of important tasks.
Unfortunately, most employers have missed something valuable on their hiring checklist and it’s costing money every year.
Is it missing from yours?
- Published in Marketplace Partner, Work Opportunity Tax Credit