Tax Credit Potential Savings

Tax Credit Potential Savings

The WOTC Program

The work opportunity tax credit program (WOTC) was developed as a partnership between the U.S. Department of Labor and the IRS. WOTC provides employers an opportunity to earn tax credits for hiring individuals from federally recognized target groups that typically have high unemployment rates. Earned tax credits are calculated and subtracted from the total amount owed to the IRS, reducing the amount your company must pay in taxes.

Potential Savings

The potential tax credit an employer can receive per employee is based on the target group the employee falls under, which is broken down as follows:

  • Unemployed Veteran: $5,600
  • Disabled Veteran: $9,600
  • Long-term Welfare: $9,000
    • Year 1: $4,000
    • Year 2: $5,000
  • All other Target Groups: $2,400

Download the White Paper about the “Eight Things You Need to Know” about Employer Tax Credits.

OR, find out, from an expert, if you qualify for Employer Incentives on this page.

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