Do businesses get a tax credit for hiring individuals with barriers to employment?
Work Opportunity Tax Credit
The Work Opportunity Tax Credit (WOTC) is a Federal tax credit available to employers who hire individuals from eligible target groups with significant barriers to employment. Each year, employers claim over $1 billion in tax credits under the WOTC program. The success and growth of this income tax credit for business is beneficial for all who participate, while increasing America's economic growth and productivity.
WOTC reduces an employer's cost of doing business, requires little paperwork, and applying for WOTC is simple.
WOTC can reduce an employer's federal income tax liability by as much as $9,600 per employee hired.
There is no limit on the number of individuals an employer can hire to qualify to claim the tax credit.
Certain tax-exempt organizations can take advantage of WOTC by hiring eligible veterans and receiving a credit against the employer's share of Social Security taxes.
Vocational Rehabilitation referrals are eligible for this program.
Employers can receive up to a $2,400 tax credit for hiring employees from this program depending on the number of hours worked in the first year, which must be greater than 120.
Information on this page provided by the U.S. Department of Labor, Employment and Training Administration. Please view the WOTC Fact Sheet for more information or the visit the WOTC IRS web page. You may also contact us at Progressive Abilities by visiting our Contact Us page.