Unlike the Employee Retention Tax Credit (ERC) that came about as the result of COVID-19 and its effect on businesses, the Workforce Opportunity Tax Credit (WOTC) has been around since 1996. It only took ERC about two years to gain popularity, but almost three decades later, the WOTC is still mostly unknown. So what exactly is the WOTC and how can it benefit your business? I am glad you asked. It is a federal tax credit ranging from $2,400 to $9,600 per hire, available to employers who hire workers from a ‘targeted group.’ These are workers who may otherwise face…
Posts tagged as “8850”
On December 18, 2015, President Obama signed the Omnibus Spending Bill H.R. 2029 and the PATH Act (Protecting Americans from Tax Hikes Act of 2015) into law, which among other provisions, provides a five-year extension to the Work Opportunity Tax Credit (WOTC) program, as well as expands its scope of eligible groups. The WOTC is basically a tax incentive for employers to hire and retain individuals from specific target groups. The groups include certain Veterans, Temporary Assistance for Needy Families (TANF) recipients, Food Stamp recipients, Supplemental Security Income (SSI) recipients, Vocational Rehabilitation (VR) Referred Individuals, Ex-Felons, and Summer Youth employees.…