Maximize Your Hiring Incentives: Understanding the Work Opportunity Tax Credit (WOTC)
- Bruce & Company, PSC
- Sep 30
- 2 min read
For decades, the federal government has encouraged employers to hire from certain “targeted groups” through the Work Opportunity Tax Credit (WOTC). This valuable incentive provides businesses with a tax credit for hiring individuals from designated groups, helping both employers and job seekers thrive.
However, the WOTC is set to expire at the end of the year unless Congress acts to extend it. If you want to take advantage of this credit, it’s important to act now and understand the process.
How the WOTC Works
Certification: Before claiming the credit, employers must obtain certification that a new hire belongs to one of the 10 targeted groups identified by the IRS.
Eligibility Requirements: Each qualifying employee must meet additional requirements, such as completing a specific number of service hours.
Credit Amounts: For most eligible workers, the maximum credit for first-year wages is $2,400, though it can be higher in certain situations.
Employers who take the time to navigate these requirements can reduce their tax burden while supporting workforce diversity and opportunity.
Legislative developments could impact the availability of the WOTC. Contact us for the latest updates and guidance on how your business can benefit from this program before it expires.
About Bruce & Company, P.S.C.
Founded in 1976 by Gregory T. Bruce, Bruce & Company, P.S.C. is a full-service accounting firm proudly serving clients regionally, nationally, and globally, with our central office located in Madisonville, KY. For more than four decades, we’ve delivered trusted expertise in tax, financial planning, and auditing. Our knowledgeable team is dedicated to providing personalized service and practical solutions to help individuals and businesses achieve their financial goals. Contact us to learn more about how we can support you!
