WOTC Keeps the Home Healthcare Industry Thriving!

Written by Stephanie Cornejo Banuelos. Updated Aug 6, 2018.

wotc_healthcare_home_assisted_livingThe home health care industry is booming and according to the Bureau of Labor Statistics, approximately 1.3 million additional jobs within the home healthcare field will be added through 2020. In fact, they report that those working in home healthcare positions will see a 69 percent growth through 2020.  One reason why the home healthcare industry is seeing such accelerated growth is the increase in demand of home healthcare services and facilities. As millions of people reaching an age where they will need some sort of home healthcare. Thus, increasing the expanse of the industry.

With the number of jobs being created in the home healthcare industry, there is no better time for businesses to pursue employment-based tax credits than now.  There are both federal and state hiring credits and incentives available that can help businesses offset income tax liability.  Some of these programs are based on the creation of net new jobs while others are offered to employers for employing individuals from specific target groups.  The most popular of these programs is the Federal Work Opportunity Tax Credit (WOTC).  The WOTC is a federal tax credit program that incentivizes employers to hire individuals who typically face barriers to employment such as Veterans, individuals on public assistance or the location of where the individual lives. The WOTC can range from $1,200 to $9,600 for each new employee hired from a “target group.”  The exact amount of the credit is based upon the new hire’s target group and the number of hours that he or she works. 

The WOTC can be a very lucrative program for employers within the home healthcare industry due to the nature of the industry.  With workers such as certified nursing assistants, housekeeping staff, and janitorial staff typically earning minimum wage or slightly more, the likelihood of these individuals qualifying for the WOTC is 40 percent higher than all other industries. Turnover rate in the home healthcare industry is typically higher than most industries as well.  The WOTC program is great for industries that experience high turnover because there is no limit to the number of individuals an employer can hire in order to qualify to claim the credit.

With the rising demand of job creation in the home healthcare industry, employment-based tax saving programs like the WOTC can bring positive cash flow to a business in the form of a tax credit, just by doing something they do every day. Hiring employees.


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Topics: Employment Incentives, WOTC

Stephanie Cornejo Banuelos

Written by Stephanie Cornejo Banuelos

Stephanie Banuelos leads CTI’s Credits & Incentives Practice with primary oversight of operations and overall practice development. She is focused on identifying, and maximizing federal, state and local tax credits that drive job creation, job training, capital investment and new business development.