WOTC is a widely utlized federal tax credit program available to employers for hiring individuals from a variety of targeted groups who face significant barriers to employment.
Why Does WOTC Matter?
This tax credit targets increasing the workforce participation rate in underserved communities and provides an incentive to the employer.
WOTC Targeted Groups
Designated Community Resident
TANF Recipient
Vocational Rehabilitation Referral
Qualified Veteran
Summer Youth Employee
Ex-Felon
SNAP or Food Stamp Recipient
SSI Recipient
Long-term Unemployment
Long-term TANF
WOTC BENEFITS...
..An Individual
● Immediate benefit of income in the form of wages.
● Getting a job improves the individual’s long- term employability.
● Better quality of life and increased economic circumstances
..Employers
● Financial credit that supports businesses struggling to recruit
retain and train staff.
● Decreased vacancies. WOTC participants are significantly less
likely to leave the company that hired them.
..State Economy
Reduction in expenditures that the state otherwise would have made to unemployment insurance, welfare and public assistance payments, alternative job training or job finding programs and other forms of subsidies and support.
..Communities
A 1% decline in unemployment is associated with as much as a 2% decline in property crime.
..Everyone.
With a focus on supporting employers, targeting underserved communities and reducing reliance on social safety net programs – WOTC has a history of bipartisan support across employers, labor groups and advocates.