The Work Opportunity Tax Credit

Are you capturing all of the Work Opportunity Tax Credits for which you are eligible?

Our WOTC Connect Service will simplify and manage the process from start to finish. We will prescreen new hires to capture form 8850 data, obtain an E-signature and submit online through our WOTC Connect Portal. Our direct line of communication with your States Workforce Partnership & Operations Team allows us to pick up any missing pieces and deliver your eligible tax credits on time.

General Information & Eligibility

The Work Opportunity Tax Credit (WOTC) is a Federal tax credit available to companies offering employment opportunities to certain groups who have traditionally faced significant barriers to employment.

For a full discussion of the WOTC, see the IRS link WOTC.

To be eligible, employees must:

Be certified by a Designated Local Agency (DLA) as being a member of one of 10 targeted groups.
Have begun work on or before December 31, 2025.
Not be retired.

Find Your State's DLA Office

Targeted Groups Covered By The WOTC

Certification Process

In order to recieve the credit, there are a handful of steps to take and forms to fill out in order to get employees certified.

Learn About the Certification Process

Amount of the Credit

The maximum WOTC for an employee is typically $2400:

For employees working at least 400 hours, the amount of the credit is 40% of up to $6000 paid wages.
For employees working less than 400 hours but at least 120 hours, the amount of the credit is 25% of up to $6000 paid wages.
The Work Opportunity Tax Credits your company earns, can be used in the current year, carried back 1-year, unused credits can be carried forward 20 years.

Special Rule for Veterans

For certain qualified veterans, up to $25,000 in paid wages may be taken into account in calculating the WOTC.