Work Opportunity Tax Credit
The Work Opportunity Tax Credit (WOTC) is a federal tax incentive designed to help businesses reduce their tax bill while providing employment opportunities to individuals facing barriers to finding work. By hiring individuals from targeted groups such as veterans, long-term unemployed individuals, those receiving government assistance like SNAP, ex-felons, and other underserved populations, businesses can earn a credit of up to $9,600 per employee in the first year. The actual credit amount varies depending on factors such as the employee's wages and hours worked, but it directly reduces your tax liability, putting real money back into your business.
What makes the WOTC even more attractive is that there is no cap on the number of eligible employees a business can hire, so the potential savings can quickly add up. To take full advantage of this opportunity, businesses need to screen new hires for eligibility, file necessary forms with the government within 28 days of hiring, and claim the credit when filing taxes. It’s a straightforward process that not only reduces your tax burden but also supports meaningful employment for those who need it most.
By leveraging the WOTC, businesses not only save money but also contribute to creating opportunities for individuals who might otherwise struggle to find work, making a positive impact on their community. If you think your business could benefit from the WOTC, don’t hesitate to explore your options and ensure you're taking full advantage of this valuable tax credit. Let’s work together to navigate the process and maximize your savings!
About Protego Advisers:
We specialize in crafting strategic plans that help businesses minimize their overall tax liabilities while strictly adhering to legal standards. The U.S. tax system is one of the most intricate and historically complex financial frameworks in the world. Our expertise allows us to navigate this system on behalf of our clients, enabling them to retain more of their earnings with confidence and compliance.