What is the Work Opportunity Tax Credit (WOTC)?

The Work Opportunity Tax Credit (WOTC) incentivizes employers to hire people who typically have experienced certain barriers to entering the workforce such as veterans, ex-felons, people who have long-term unemployment, and more. 

Key Facts

• Employers of all sizes are eligible to claim the WOTC.

• The WOTC is available for wages paid to certain individuals who began work on or before December 31, 2025.

• You have 28 calendar days from the employee’s start date to submit Form 8850 to gain certification.

When you take advantage of the WOTC, you can earn between $2,400 to $9,600 per individual you hire (depending on their category). After certification, taxable employers can claim the WOTC as a general business credit against their income taxes, and tax-exempt employers can claim the WOTC against their payroll taxes.

Other Tax Credits Available Now

Don’t qualify for the WOTC? You may qualify for other tax credits if you employed W-2 workers during the recent pandemic.

Employee Retention Credit (ERC): Earn up to $33,000 back in tax credits per employee from 2020 and 2021. This is essentially the government paying you for retaining employees during the pandemic.

The Vaccine Tax Credit: Earn tax credits for any wages you paid your employees while they were taking time off to get the COVID vaccine and recover.

The Paid Family and Sick Leave: Earn a tax credit for wages you paid any employees that were out sick with COVID up to two weeks.

Ready for Your Tax Credits?

Chat with one of our experts to see which tax credits you qualify for and how much money you can get back.