Work Opportunity Tax Credit (WOTC)

Work Opportunity Tax Credit (WOTC)

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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 take into account the IRS's significant changes for 2015 and 2016 with regard to 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)?


  • 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. 

Download Our Free WOTC Guide

WOTC-Guide-Thumbnail-260px.jpgBrian McCuller's 20 page WOTC guide provides the groundwork you need to know to benefit from WOTC incentives. The guide answers questions such as:

  • What is the 28 day rule?
  • What are forms 5884, 5884-C, 8850, 9061, and 9062?
  • What are the IRS changes to WOTC for 2015 and 2016?
  • What are the rules for Empowerment Zones?
  • Which organizations can take advantage of WOTC incentives?
  • How do I know the tax credit for different types of eligible workers?
  • What are the carry back and carry forward rules for using the tax credit?

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!

Get a Quote for WOTC Automation Services

Answer these questions and get a prompt price quote. A representative will follow up to assess your needs.

Contact Us Today for Help with WOTC

LBMC is a top accounting firm with three decades serving our customers. We have extensive experience in all matters of accounting and taxes, including WOTC. Let us help you navigate this exciting opportunity to grow your business.

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