The U.S. Department of Labor (DOL) issued statistics for 2018 that highlight how much employers can benefit from participating in the federal Work Opportunity Tax Credit (WOTC) program.
According to the DOL, employers in 2018 obtained 2.2 million WOTC certifications. This represents billions of dollars in federal tax credits.
Employers particularly benefited from hiring job candidates who were part of the Supplemental Nutrition Assistance Program (SNAP) that issues food stamps. Over 1.4 million certifications and subsequent tax credits were awarded to organizations for hiring employees of this target group, representing more than 66% of tax credits from the program in 2018. Employers also were interested in hiring unemployed veterans and people under Long-term Temporary Assistance to Needy Families.
The states that awarded the most Work Opportunity Tax Credits in 2018 were Texas, California, Florida, Illinois, Ohio, Pennsylvania, Georgia, Michigan, Wisconsin, and Missouri. Organizations with operations in these states should take note of the filing for tax credits submission process as many of these states, like Florida, have been improving their online WOTC submission portals.
Employers can earn up to $9,600 in tax credits through the WOTC program per qualified candidate. Some third-party organizations will implement a two-step process for submitting WOTC candidates to appropriate state workforce agencies (SWA), which means less work for you and higher qualification rates.
The year is almost half over. What are you waiting for?
With the Work Opportunity Tax Credit, employers can diversify their workforce and increase their bottom line. Download our information sheet to find out how Trusaic can help you get started with WOTC.