Payroll

Do I qualify for the Work Opportunity Tax Credit?

The Work Opportunity Tax Credit creates jobs while helping employers think a little more carefully about who they hire. It’s available for companies that hire employees from disadvantaged and underrepresented groups, including:

  • Unemployed veterans (including disabled veterans)
  • Temporary Assistance for Needy Families (TANF) recipients
  • Food stamp (SNAP) recipients
  • People who live in “Empowerment Zones” or “Rural Renewal Counties”
  • People who have been referred to vocational rehabilitation
  • Ex-felons
  • Supplemental Security Income recipients
  • Summer youth employees
  • Qualified recipients of long-term unemployment benefits

The idea behind the WOTC is to help workers in target groups gain economic independence. It’s a well-used program, with businesses claiming over $1 billion from work opportunity tax credits annually.

Get more specific detail about which employees are eligible here.

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