The Work Opportunity Tax Credit (WOTC) provides a federal tax income benefit for businesses who hire individuals from specific target populations. Provided as an incentive, businesses are offered a tax credit for each qualified new jobseeker; thereby, reducing their federal tax liability with each qualified hire. Tax credits range from $2,400 to $9,600, depending on the employee hired.
The WOTC has been a win-win-win experience, said Roger Blau, Ph,D., vice president of DP Professionals in Columbia.
“Our company’s business is information technology staffing, and we are always searching for the best talent available to meet our client’s needs,” he said. “To be able to hire veterans to work at our client’s worksites has been beneficial for the individuals, for our clients and for us.
The qualifying target populations include:
- Temporary Assistance for Needy Families (TANF) Recipient – $2,400
- Recently Released Ex-felons -$2,400
- Designated Community Resident – $2,400
- Vocational Rehabilitation Client – $2,400
- Supplemental Nutritional Assistance (SNAP) Recipient – $2,400
- Supplemental Security Income Recipient – $2,400
- Long-Term Family Assistance (TANF) Recipient – $9,000
- Veteran Unemployed four weeks – $2,400
- Veteran Unemployed six or more months – $5,600
- Recently Discharged Disabled Veteran – $4,800
- Disabled Veteran Unemployed six or more months $9,600
Sponsored by the U.S. Department of Labor, the WOTC program is administered by the South Carolina Department of Employment and Workforce (DEW).
Though the WOTC office receives more than 250 tax credit requests per day, automation allows for receipt of certification within one week of submission. This allowed for the release of more than 18,500 certifications within days of legislative program reauthorization on January 1, 2013.
In fact, in the past 12 months the WOTC office has issued a total of 46,657 certifications, representing in excess of $128 million in federal tax savings to businesses in South Carolina.
“For our company to receive a tax benefit is just the cherry on the cupcake,” Blau said. “We are proud to have these veterans as our employees.”
For Roger Alley, owner of Blackstone Café in Beaufort “the tax credit helps a lot in keeping us profitable and is a good incentive for hiring from the targeted groups.”
“As a tax payer, I greatly appreciate it,” he concluded.
To learn more about how your business can take advantage of the Work Opportunity Tax Credit program,contact Laura Rushton, stateWOTC coordinator, at 803-737-2592 or firstname.lastname@example.org.