BusinessWorks: Work Opportunity Tax Credit (WOTC)
The Work Opportunity Tax Credit (WOTC) is a federal tax credit for private sector employers to encourage the hiring of jobseekers who traditionally have difficulty finding employment. This includes some Hoosier Veteran groups, individuals who utilized public assistance, ex-felons, disabled individuals and certain groups of Hoosier youth. The main objective of this program is to enable these targeted groups to move from economic dependency to self-sufficiency as they earn a steady income and become taxpayers, while the participating employers are compensated by being able to reduce their federal income tax liability.
WOTC reduces an employer's cost of doing business and requires little paperwork. Helping those in need find and retain good jobs and gain on-the-job experience benefits all employers and increases America's economic growth and productivity.
THE BOTTOM LINE
- Employers make the hiring decision.
- There is no limit to the number of new hires who can qualify the employer for the tax savings.
- There is minimal paperwork needed to claim the WOTC.
Indiana Department of Workforce Development
US Department of Labor