The Work Opportunity Tax Credit (WOTC) was signed on December 18, 2015 by President Obama. This relatively new federal tax credit is designed to provide jobs for minorities by offering employers an incentive for hiring minority candidates.
The WOTC promotes a more diversified work environment by targeting people who have barriers to finding employment. It’s also intended to help with moving the economy from a dependent state to a self-sufficient state by helping workers with long-term unemployment find steady income and become an economic participant and contributing taxpayer.
On average, varying where workers fall in the target groups, employers can receive a credit of $1,200 to upward of $10,000 per employee hired. This program extends for a five-year period, ranging from December 31, 2014 to December 31, 2019, giving the new-age generation a time to get into a job placement without much hassle.
Overall, WOTC is an effective tax credit to help motivate employers to diversify their hiring processes and allow for equal employment opportunity in America.
Businesses looking to receive these tax credits have to follow certain guidelines. Hiring a professional to help out with getting these tax credits approved may be necessary for faster expedition of each credit. Be a part of the change and see which target groups are involved with the new WOTC program.
Image credit: Jeff Djevdet