How to Manage UI Cost Effectively
Q & A 
Edition 6

April 28, 2014

What is WOTC and how can it help me?

The Work Opportunity Tax Credit (WOTC) is a Federal tax credit available to employers for hiring individuals from certain target groups who have consistently faced significant barriers to employment. 

Which individuals qualify for the Federal tax credit?


 1) A veteran (subject to certain guidelines)

                2) Long-term Temporary Assistance for Needy Families (TANF) Recipient

                3) Short-term TANF Recipient

                4) SNAP (food stamp) Recipient 

                5) Designated Community Resident

                6) Vocational Rehabilitation Referral

                7) Ex-felon

                8) Supplemental Security Income (SSI) recipient

                9) Summer Youth Employee


How much will the tax credit be?


The maximum tax credit ranges from $1,200 to $9,600, depending on the employee hired. 


Can I still submit WOTC applications even though the program has expired? 

Per the Department of Labor, the WOTC program expired on December 31, 2013. At this time, we have no indication whether Congress may pass legislation extending authority for the program beyond December 31, 2013. However, in the past when the program's authority lapsed, Congress has retroactively reauthorized the program back to the date of expiration. In anticipation of possible retroactive reauthorization, employers should continue to submit WOTC applications for all target groups to State Workforce Agencies.

Be sure to add to your address book or safe senders list so our email can get to your inbox.

This email was sent from a notification-only email address that cannot accept incoming email. 


      Like us on FacebookFollow us on Twitter