The Work Opportunity Tax Credit (or WOTC) transforms your hiring process into a new source of profit. WOTC services will give your company a tax credit based on the wages you pay your qualifying employees.
What does this mean to you?
WOTC provides a tax credit that employers use to reduce the federal income tax they owe. The dollar amount varies between $1,200 and $9,600 for each qualifying employee, depending on why they qualify and how long they work.
For most employers, 10 to 20% of their existing workforce would have qualified, if only they had completed some simple WOTC paperwork at the time of hire.
Click here for details about how individual employees qualify.
Because WOTC lowers an employer’s federal income tax, ultimately it means more money to invest in your business. It means you can afford better training for your workforce. Better equipment for your production line. Better wages to attract more skill.
It’s no laughing matter. If you are a business owner, it means less money for Uncle Sam and more money in your pocket at the end of the year.
In 2016, a medium-sized restaurant chain hired 500 new workers. They generated $117,697 WOTC tax credit.
In 2015 & 2016, a larger employer hired 3,021 new employees and generated WOTC tax credits worth $728,877.
In 2016, a grocery store hired 73 employees, generating WOTC tax credits worth $16,560.
In 2016, a small insurance agency hired 9 employees. They generated $5,536 in WOTC tax credit.