Employment and Hiring Incentives

The Work Opportunity Tax Credit has been extended through December 31, 2019. All features of this employment initiative remain the same and your dollar savings opportunities are significant.

The program provides employers with incentives to hire individuals with special employment and economic needs. It is geared to those companies that hire entry level people and the savings to companies can be substantial. Of course, in a Sub-chapter S setting, the tax credit passes directly to the shareholder(s) individually. The same flow-through is applicable to members of LLCs.

Work Opportunity Tax Credit (WOTC)

Tax credits are available for hiring the following designated people:

  • An 18 to 39 year old member of a family who received SNAP benefits for at least 6 consecutive months before the date of hire or, at least 3 of the 5 months before the date of hire.
  • A member of a family receiving assistance for Temporary Assistance for Needy Families¬†¬† (TANF) for 9 of the 18 months before the date of hire.
  • A member of a family who has received TANF payments for at least 18 consecutive months before the date of hire.
  • Individuals between the ages of 18 to 39 who live in federally designated Empowerment Zones, Enterprise Communities or Renewal Communities.
  • Individuals receiving Supplemental Security Income (SSI) benefits for any month during 60 days before the date of hire.
  • Veterans receiving assistance under SNAP or service-connected disability.
  • Long-Term unemployment recipients.
  • Other economically disadvantaged people.

Employers who hire WOTC – qualified employees are eligible for federal tax credits worth up to:

  • $2,400 for each new adult hire,
  • $1,200 for each new summer youth hire,
  • $9,600 for each new disabled veteran hire, and
  • $9,000 for each new long-term family assistance recipient.