Work Opportunity Tax Credit Application Process

This guide outlines the Work Opportunity Tax Credit (WOTC) application process for business owners. WOTC is a federal tax credit designed to incentivize private-sector businesses to hire individuals from ten target groups who face barriers to employment. Eligible employers can receive tax credits ranging from $2,400 to $9,600 for each new qualifying hire. The document details the eligibility criteria for various groups, including food stamp recipients, veterans, and ex-felons, among others. It explains the WOTC.com process, which involves completing the IRS 8850 form for each new hire, either online or via paper submission. The WOTC.com team of accounting professionals assists in reviewing applications and submitting them to state agencies. Additionally, the guide describes how payroll data can be integrated into the WOTC.com system to calculate tax credits accurately. Overall, the document serves as a comprehensive resource for understanding and navigating the WOTC application process.