Work Opportunity Tax Credit

Tax credits range from $1,200 to $9,600 per eligible new hire.

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WHAT IT IS:
The Work Opportunity Tax Credit (WOTC) is a federal  incentive program that encourages employers to hire employees from targeted groups who historically faced employment barriers.

Tax credits range from $1,200 to $9,600 per eligible new hire.

On average, 20% of new hires are eligible for the program.

WOTC represents a permanent reduction in income tax, directly reducing a business’s effective tax liability.

In order to capture these credits, a business needs to apply within the first  28 days of a new employee’s start date, which makes WOTC credits often a function of a company’s HR department, rather than an accounting department.

How OnCentive Helps You Leverage WOTC To Increase Profitability

OnCentive team makes capturing these WOTC credits simple and convenient.
We verify every new hire for eligibility. Our team manages collecting the proper documentation and follow up information from your employees.

OnCentive tailors our process to integrate with your current hiring processes and systems.
HR departments love OnCentive because of our customized approach to WOTC integration. Our WOTC experts work with your internal team to fit within your current processes.

OnCentive helps you receive the maximum credit available by increasing compliance.
OnCentive’s technology integrates directly within the states' WOTC departments. This ensures a higher compliance and faster turnaround time for your credits getting certified.

Get Started! Start screening for eligible new hires.
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OnCentive donates 1% of annual profits generated from clients claiming the Work Opportunity Tax Credit to Hire Heroes USA

Hire Heroes USA is a nonprofit that provides free career services to service members, veterans and military spouses who are seeking jobs in the civilian workforce. In 2021, Hire Heroes USA helped 12,594 veterans and military spouses secure meaningful employment, with an average salary of $62,680.

Work Opportunity Tax Credit Targeted Groups:

  • Unemployed & disabled veterans

  • TANF (Temporary Assistance for Needy Families)

  • SNAP (Food Stamp) recipients

  • Vocational rehabilitation referral

  • Long-term unemployed

  • Ex-felons

  • Summer youth employee

  • Supplemental security income recipients

  • Designated community residents (living in Empowerment Zones or Rural Renewal Counties)

CASE STUDY: Work Opportunity Tax Credit

In some industries up to 60% of new hires qualify.

If you have 50 new hires and up to 25% of the new hires qualify then there could be a credit up to

$115,200

Industries Best Aligned For The Work Opportunity Tax Credit

If your business regularly hires hourly W-2 employees, OnCentive can help you take advantage of the Work Opportunity Tax Credit. Blue collar industries or industries with high turnover often see the largest benefit:

  • Construction

  • Food Service

  • Manufacturing

  • Trucking

  • Call Center

  • Staffing

  • Hospitality

  • Assisted Living

  • Retail

  • Heatlthcare

Talk To A WOTC Expert

If your business regularly hires hourly W-2 employees, OnCentive can help you capture the Work Opportunity Tax Credit.

A 15-minute call can increase your company’s profitability

Schedule Call with OnCentive Expert

FAQs

How do I claim my WOTC credit?

An eligible employer must file Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Tax Credit, with their respective state workforce agency within 28 days after the eligible new hire begins work.

For which tax years can the credit be applied?

Employers may claim the Work Opportunity Tax Credit for a total of two years. Employers who do not take the full credit amount because of the tax liability limitation may carry back one year or forward 20 years.

When should the WOTC form be completed?

By law, this form must be completed “on or before the day” you offer them a job. Many companies conduct this screening on the same day employees fill out their other new-hire paperwork. It cannot be completed later.

Don't Worry, We've Got You Covered

OnCentive simplifies the process of identifying and qualifying for business incentives and tax credits; maximizing your business’s profitability, and putting your hard earned money back in your hands so you can use it to grow your business.

OnCentive’s leadership's 100 years of combined tax experience, coupled with our risk-free model is why thousands of hard-working business owners trust OnCentive experts to recover more than $1.5 billion in tax, hiring, and other business incentives.

Maximize Credit Yield

Our profitability is tied with yours. We work off 100% success fees which means we are motivated to find the maximum credits your business can qualify for.

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Comprehensive Reporting

You will be provided with an Comprehensive Report, explaining the credit your company received, the calculations for what was determined and the proof for the money you get back.

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Contested Credit Protection

In the unlikely event that your credit is ever contested, the OnCentive team will defend our work and will fully refund any credits that are disallowed.

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Trusted Credit Experience

Our leadership has over 100 years of combined tax experience. With $1.5 billion in incentives captured and $0 returned to the IRS, you are in good hands with OnCentive.

See If Your Business Qualify