Tax

Work Opportunity Tax Credit

Don’t miss out on the tax incentives available when hiring.

The Work Opportunity Tax Credit (WOTC) is a federal income tax credit program designed to encourage companies to hire individuals in specific areas or from specific groups of people. The groups include:

  • Members of families that receive Supplemental Nutrition Assistance Program benefits (food stamps)
  • Members of families that receive short- or long-term Temporary Assistance to Needy Families or Aid to Families with Dependent Children (welfare)
  • Qualified (unemployed or disabled) veterans
  • Qualified ex-felons or pardoned, paroled, or work-release individuals
  • Individuals who have completed or are completing vocational rehabilitation programs
  • Qualified “summer youth” ages 16 or 17 years old living in an empowerment zone
  • Individuals receiving Supplemental Security Income
  • Residents of designated communities (individuals living within an empowerment zone)
  • New for 2016: individuals who were unemployed for at least 27 consecutive weeks and received unemployment compensation under state or federal law during this period

Because the hiring process can be extremely time sensitive, it’s easy to miss tax incentive opportunities. By partnering with tax experts with WOTC experience, businesses benefit from a process that allows for the identification of eligible hires and allows the business to gain a valuable employee and maximize applicable tax incentives.

Featured Expertise

Gregory G. Butler, CPA

Specializing in multistate taxation and incentives, Greg is the leader of Wipfli's State and Local Tax Practice. He has over 25 years of experience in providing tax compliance and consulting services to closely held companies.