The Work Opportunity Tax Credit (WOTC) is a federal tax credit in the United States designed to incentivize employers to hire employees from certain target groups who have faced significant barriers to employment, such as veterans, individuals on public assistance, and ex-felons. The credit is available to eligible employers who hire individuals from these target groups and who meet certain requirements. The amount of the credit is based on a percentage of the first-year wages paid to the eligible employee, with a maximum credit available per employee.
CMS (iRecruit’s publisher) has been providing WOTC screening services since 1997, #WeKnowWOTC, so we know a few things about WOTC that most employers aren’t aware of.
- WOTC is worth Billions to U.S. employers. In 2022, the United States issued 2,569,646 tax credits. Approximately $6,000,000,000 in value. How much did you receive?
- You should aim to screen all new hires for eligibility. Between 10-15% of all new hires may be eligible due to being a member of one of WOTC’s Ten Target Groups.
- There is a 28 Day Rule which means that all screening needs to take place within 28 days of the employee’s start date. If you don’t screen, you miss out if that person was eligible.
Customers can use our WOTC Screening service with iRecruit, iConnect, or stand alone.
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