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The Work
Opportunity Tax Credit Program, or WOTC, gives employers a
federal income tax credit for employing personnel from specific target
groups. Mckenzie Chase Management provides consulting and
administrative support to help businesses capture these employer tax
credits.
WOTC Timeline:
- WOTC Program was created by the
Small Business Job Protection Act of 1996.
- The Welfare-to-Work Tax
Credit (W2W)
was created by the Taxpayer Relief Act of 1997
- The
WOTC & the W2W continued as separate tax credits until Dec. 2006
when Public Law 109-432 repealed Sec. 51A of the IInternal Revenue Code
by merging the W2W into the WOTC
Program as another target group.
How WOTC Credits
Are Calculated
- For WOTC qualified employees.
- Maximum Credit: $2,400 per WOTC
qualified employee.
- Disabled Veterans maximum: $4,800 per WOTC qualified employee.
- Long-term Welfare Recipients maximum: $9,000 per qualified
employee over 2 years.
- WOTC qualified new hires must
work at least 120 hours to qualify for tax credits.
Contact
us now to begin capturing these valuable tax credits.
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