Work Opportunity Tax Credit (WOTC)

LBMC offers comprehensive WOTC services, including a web-based tool for managing your company’s WOTC program. Our nationwide WOTC solutions help your business identify eligible employees, ensure federal and state compliance, provide detailed reporting, and maximize the cost savings to your business. These solutions consider the IRS’s significant changes for 2015 and 2016 regarding WOTC.

What Are Work Opportunity Tax Credits?

Work Opportunity Tax Credits are federal credits distributed at the state level. Businesses are entitled to claim tax credits for hiring individuals who are members of certain targeted groups with significant barriers to employment. The amount of the credit ranges from $2,400 to $9,600 depending on which group the individual belongs to. Employers can claim credits for an unlimited number of hires.

The Work Opportunity Tax Credit is now in place through Dec. 31, 2019, thanks to a five-year extension put in place by the PATH Act. Companies should put in place processes to reap this benefit because we now have a level of certainty that should encourage them to take advantage of the credit.

Who is Eligible for a Work Opportunity Tax Credit (WOTC Groups)?

Chart explain eligibility for Work Opportunity Tax Credit
  • Members of families that receive Supplemental Nutrition Assistance Program (SNAP) benefits (food stamps)
  • Members of families that receive Temporary Assistance for Needy Families (TANF) or Aid to Families with Dependent Children (welfare)
  • Individuals receiving Supplemental Security Income (SSI)
  • Qualified disabled or unemployed veterans
  • Qualified ex-felons
  • Individuals who have completed or are completing a vocational rehabilitation program
  • Qualified “summer youth” ages 16 or 17 living in an empowerment zone
  • Residents of designated communities, including individuals living within an empowerment zone
  • Long-term unemployed (27 consecutive weeks or longer). This is a new eligibility class.

LBMC’s WOTC Automation Service

In addition to our consulting services, we offer a Web portal for employees to self-register for WOTC. Streamline your WOTC compliance and reduce staffing, compliance mistakes, and paperwork.

  • Minimal burden placed on hiring staff
  • Give employee 3 to 5 minutes of privacy to enter their data on our website
  • Confirmation number is provided to return to hiring manager
  • Bilingual – English and Spanish
  • If qualified, form 8850 is generated and e-signed by employee – Virtually no forms to submit!