Work Opportunity Tax Credit

The Work Opportunity Tax Credit gives employers a great incentive to hire ex-offenders in the form of actual cash savings on their income tax liability.

The Work Opportunity Tax Credit plays an integral part in helping ex-offenders obtain employment. The WOTC, authorized by the Small Business Job Protection Act of 1996, is a federal tax credit that encourages employers to hire certain targeted individuals, including:

Ex-offenders who may have a problem gaining employment due to his/her criminal record and back ground.
Those who are receiving or have recently received Temporary Assistance to Needy Families (TANF) or Aid to Families with Dependent Children (AFDC).
18-24 year-old individuals EZ/EC or RC eligible resident hired between May 1st and September 15th as a Summer Youth Employee.
A veteran who is a member of a family receiving food stamps.
A disabled person completing rehabilitation services including persons from the USVA.
An ex-felon who is a member of a low-income family.
A recipient of SSI benefits.
An employee of the New York Liberty Zone Business.
The Work Opportunity Tax Credit reduces the employer’s income tax liability by as much as $9,600 per year, depending on employee eligibility and the number of hours worked.

The Federal Work Opportunity Tax Credit (WOTC) provides a tax credit for employers that hire ex-offenders, as well as other people considered disadvantaged. All employers in the United States are eligible to participate in the program.

Find out more, visit the site: http://www.doleta.gov/business/incentives/opptax/

Be armed with this vital material when you apply for employment.

You may also want to learn about the Federal Bonding Program.