{"id":158,"date":"2022-08-09T21:27:25","date_gmt":"2022-08-09T21:27:25","guid":{"rendered":"https:\/\/c1mdevsite.com\/braunability.com\/everything-you-need-to-know-about-the-work-opportunity-tax-credit\/"},"modified":"2022-08-09T21:27:25","modified_gmt":"2022-08-09T21:27:25","slug":"everything-you-need-to-know-about-the-work-opportunity-tax-credit","status":"publish","type":"post","link":"https:\/\/c1mdevsite.com\/mdctraining.ca\/everything-you-need-to-know-about-the-work-opportunity-tax-credit\/","title":{"rendered":"Everything You Need to Know About the Work Opportunity Tax Credit"},"content":{"rendered":"
\"team<\/p>\n

If you are a business owner, you know that tax planning is an integral part of the business. Every decision you make has its tax advantages or disadvantages. You already know how higher salaries and extra benefits help your employees but directly impact on your bottom line. However, did you know that you may be able to offset some of your business costs with a federal tax credit known as the Work Opportunity Tax Credit? If you are unfamiliar with this tax credit, now is a great opportunity to find out if you are eligible and how it can help your business.\u00a0<\/span>\u00a0<\/span><\/p>\n

\u00a0<\/span>Each year, employers claim over $1 billion in tax credit under the Work Opportunity Tax Credit, also known as the WOTC. This is a tax incentive for employers to hire certain hard-to-place job seekers. The goal of this incentive is to help individuals become economically self-sufficient and reward employers who give them employment opportunities.\u00a0<\/span>\u00a0<\/span><\/p>\n

\u00a0<\/span>Our Tax Experts Can Help\u00a0<\/span><\/b>\u00a0<\/span><\/h2>\n

\u00a0<\/span>It\u2019s a little complicated, so seeking help from a company that provides professional tax preparation services<\/a> is a smart business decision. The expert team at Waters Hardy<\/strong> can assist you with all accounting services, including tax prep, related to the WOTC. Understanding all the tax advantages available to you can save you money, which is always a good business move.<\/span>\u00a0<\/span><\/p>\n

\u00a0<\/span>What is the Work Opportunity Tax Credit?<\/span><\/b>\u00a0<\/span><\/h2>\n

\u00a0<\/strong>The Work Opportunity Tax Credit (WOTC)<\/a> is a federal tax credit available to employers who hire members of certain targeted groups.<\/strong> Furthermore, it is primarily aimed at those who have consistently faced employment obstacles. This is a voluntary program and employers are not obligated to recruit WOTC eligible employees.<\/span>\u00a0<\/span><\/p>\n

\u00a0<\/span>The central idea of this hiring incentive is that the WOTC helps break the cycle affecting targeted individuals. This is targeted towards individuals who often find that a lack of job experience prevents them from getting hired in the first place. The jobs do not have to be permanent, as long as they provide the desired effect of offering work experience.<\/span>\u00a0<\/span><\/p>\n

\u00a0<\/span>The program was set to end in 2020, but it\u2019s now extended through 2025. There is no limit to the number of employees<\/strong> an employer can hire to qualify for the WOTC.\u00a0<\/span>\u00a0<\/span><\/p>\n

Who is Eligible for the Work Opportunity Tax Credit?<\/span><\/b>\u00a0<\/span><\/h3>\n
    \n
  1. Qualified recipients of aid to families with dependent children or a successor program that received Temporary Assistance for Needy Families (TANF)<\/span>\u00a0<\/span><\/li>\n
  2. Qualified veterans<\/span>\u00a0<\/span>\u00a0<\/span><\/li>\n
  3. Qualified ex-felon<\/span>\u00a0<\/span><\/li>\n
  4. Designated community resident<\/span>\u00a0<\/span>\u00a0<\/span><\/li>\n
  5. Vocational rehabilitation referral<\/span>\u00a0<\/span>\u00a0<\/span><\/li>\n
  6. Summer youth employee<\/span>\u00a0<\/span><\/li>\n
  7. Supplemental nutrition assistance program (SNAP) recipient<\/span>\u00a0<\/span>\u00a0<\/span><\/li>\n
  8. Supplemental security income (SSI) recipient<\/span>\u00a0<\/span>\u00a0<\/span><\/li>\n
  9. Long-term family assistance recipient<\/span>\u00a0<\/span>\u00a0<\/span><\/li>\n
  10. Qualified long-term unemployment recipient<\/span>\u00a0<\/span>\u00a0<\/span><\/li>\n<\/ol>\n

    *Employers CAN\u2019T claim the WOTC for:<\/span><\/b>\u00a0<\/span><\/p>\n