Summary
This document is a guide on the Work Opportunity Tax Credit (WOTC), a federal income tax credit available to employers who hire individuals from eligible target groups facing significant employment barriers. The WOTC allows employers to reduce their effective tax rate by offering up to $9,600 in tax credits per eligible employee based on hours worked and wages paid. The guide outlines the qualification requirements, including the necessity for certification by a State Workforce Agency (SWA) before claiming the credit. It details the steps for claiming WOTC, which include screening employees, submitting application forms to the SWA, checking certification status, and processing applications. The document also explains how Sikich can assist companies in leveraging the WOTC by providing screening solutions, submitting applications, calculating credits, and ensuring compliance with legislative changes. Furthermore, it notes that both for-profit and not-for-profit organizations can participate in the program, potentially reducing payroll tax liabilities when employing eligible U.S. veterans.
