In the world of employment incentives, there exists an impactful, yet often overlooked tax credit that takes on the spirit of the Olympics by empowering individuals and promoting diversity.
The Starting Line: Understanding WOTC
Enter the Work Opportunity Tax Credit (WOTC) – a program designed to encourage businesses to hire individuals from certain target groups who face barriers to employment. This includes veterans, recipients of certain government assistance programs, ex-felons, and other designated groups. By offering employers a tax incentive, for hiring, WOTC aims to stimulate the recruitment of diverse talent pools and foster a more inclusive labor market.
Hand the Baton to CTI: How WOTC Works
Similar to the journey of athletes competing on the world stage and going for "gold," businesses must navigate the complicated nuances of the WOTC Program to earn their big reward.
At Corporate Tax Incentives (CTI), we partner with companies to establish an easy and integrated process to screen and identify employees that could fit into 1 of 14 specified target groups. After the initial screening process is complete and the eligible employees are identified, CTI keeps racing by sending out applications to the various state workforce agencies, including the supporting documentation necessary to obtain a WOTC Certification per employee.
Once the employer's year-end approaches, CTI is ready to cross the finish line and calculates the credit based on all certificates received within the tax year.
A Medal-Worthy Benefit
For businesses, this tax credit serves as a significant financial incentive, reducing a company's tax liability dollar for dollar on their Federal tax filing. WOTC encourages companies to broaden their recruitment efforts and consider applicants who may have barriers to employment, but also bring unique backgrounds and skills to the table.
And the benefit is like getting a financial gold medal! Employers can claim a tax credit ranging from $1,200 to $9,600 per certified employee, depending on the individual’s target group and hours worked.
Going for Gold with CTI
As we celebrate the achievements of athletes striving for excellence in the Olympics, let us also recognize the efforts of businesses championing diversity through the Work Opportunity Tax Credit. Just as athletes inspire with their dedication and perseverance, WOTC encourages businesses to embrace diversity and propel their teams toward success.
