What is the WOTC Program?

The Work Opportunity Tax Credit is a Federal tax credit that is available to employers who hire individuals from eligible groups, who statistically experience significant barriers to employment. WOTC encourages employers to hire members of groups who statistically and historically experience difficulty finding jobs, by reducing employers federal income tax liability by variable amounts, but up to $9,600 per employee hired.

Below you can find a list of qualifiers for new hires. New hires can be eligible for the tax credit if they fall into one of the following groups (and meet all requirements for that group): 

WOTC in talentReef

Initial screening for WOTC is done via third-party integrations within the talentReef application or onboarding process. 

Eligible Groups

Veterans

A new hire qualifies for a veterans target group, if the individual is:

  • A veteran who is a member of a family that received SNAP benefits (food stamps) for at least a 3-month period during the 15-month period ending on the hiring date;

OR

  • A disabled veteran entitled to compensation for a service-connected disability, who has been:

    • Hired within 1 year of discharge or release from active duty, OR

    • Unemployed for at least 6 months in the year ending on the hiring date;

OR

  • A veteran who has been unemployed for:

    • At least 4 weeks in the year ending on the hiring date; OR

    • At least 6 months in the year ending on the hiring date.

Note: to have veteran's status to be eligible for WOTC, an individual must:

  • Have served on active duty (not including training) in the U.S. Armed Forces for more than 180 days, OR have been discharged or released from active duty for a service-connected disability; AND

  • Not have a period of active duty (not including training) of more than 90 days that ended during the 60-day period ending on the hiring date.

TANF Recipients

Long-Term Temporary Assistance for Needy Families (TANF) Recipient

To qualify for this target group, a new hire must be a member of a family that meets one of the following circumstances:

  • Has received TANF benefits for at least 18 consecutive months ending on the hiring date; OR
  • Has received TANF benefits for at least 18 consecutive or non-consecutive months after August 5, 1997, AND has a hiring date that is not more than 2 years after the end of the earliest 18-month period after August 5, 1997; OR
  • Has stopped being eligible for TANF payments during the past 2 years, because a Federal or state law limited the maximum time those payments could be made.
Short-Term TANF Recipient

A new hire qualifies for this target group, if the individual is a member of a family that received TANF benefits for any 9-month period during the 18-month period ending on the hiring date.

SNAP (food stamp) recipients (Supplemental Nutrition Assistance Program)

A new hire qualifies for this target group, if the individual is:

  • Age 18 to 39 years old, AND
  • A member of a family that received Supplemental Nutrition Assistance Program (SNAP) benefits for:
    • The 6 months ending on the hiring date, OR
    • At least 3 of the 5 months ending on the hiring date.

Designated Community Residents

A new hire meets the criteria for this target group, if the individual:

  • Is age 18 to 39 years old, AND
  • Resides within one of the federally designated:
    • Rural Renewal Counties (RRCs), OR
    • Empowerment Zones (EZs).

Vocational Rehabilitation Referral 

A new hire is a member of this target group, if the individual with a disability has completed, or is completing, rehabilitative services provided by:
  • A state-certified agency, OR
  • An Employment Network under the Ticket to Work program, OR
  • The U.S. Department of Veteran Affairs.

Ex-Felons

A new hire meets the criteria for this target group, if the individual:

  • Has been convicted of a felony; AND
  • Has a hiring date that is not more than 1 year after the conviction or release from prison.

A new hire meets the criteria for this target group, if the individual is a recipient of SSI benefits for any month that ends during the 60-day period ending on the hire date.

Summer Youth Employees

A new hire is a member of this target group, if the individual:

  • Is a 16 or 17 year old youth, AND
  • Works for the employer between May 1 and September 15; AND
  • Resides in an Empowerment Zone (EZ).

Qualified Long-Term Unemployment Recipients

An individual hired after December 31, 2015 who is in a period of unemployment that:

  • Is not less than 27 consecutive weeks, and
  • Includes a period (which may be less than 27 consecutive weeks) in which the individual received unemployment compensation under state or federal law.


    To learn more, download the guide from the US Department of Labor located at the bottom of this page! 

Attachments

wotc_employer_guide.pdf wotc_employer_guide.pdf

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