Hiring the right talent is crucial for every organization. What if, while building your team, you could also make a meaningful social impact and earn tax credits for your business? That’s where the Work Opportunity Tax Credit (WOTC) comes into play.
The WOTC is a federal tax credit available to companies that hire individuals from certain target groups that often face barriers to employment, such as veterans and recently incarcerated individuals. Businesses are not only helping their communities but can also claim a tax credit ranging from $2,400 to $9,600 depending on specific factors.
However, identifying WOTC-eligible employees can be tricky. Thankfully, there are many resources available designed to connect businesses with these individuals. Here’s a detailed look at organizations to find WOTC-eligible employees.
Why Hiring WOTC-Eligible Employees Matters
Beyond the financial advantages, hiring WOTC-eligible individuals fosters diversity in the workforce. By creating opportunities for those who need them most, you’re helping build stronger communities while improving your company’s bottom line. Plus, the tax credits you earn can be reinvested in training and growth.
Veteran-Focused Organizations & Programs
Veterans, particularly disabled veterans or those transitioning to civilian life, make up one of the largest WOTC-eligible groups. These organizations are an excellent step toward hiring skilled, motivated employees.
National Resources
- RecruitMilitary: A leading platform connecting employers with transitioning service members and veterans.
- Department of Labor VETS Program: Offers tools and strategies to hire and support veterans in the workplace.
- Hiring Our Heroes: A U.S. Chamber of Commerce initiative focused on creating career opportunities for veterans and their families.
State Programs
Veteran Affairs departments in many states offer employment assistance. Some examples include:
- Georgia’s VA Center: Includes job placement resources and tools for employers.
- Florida Veterans Employment Services: A hub for connecting veterans with local job openings.
- Idaho’s Veterans Employment Services: A streamlined resource for employers looking to recruit veterans.
Check your state’s government website for more information about your state.
College Resources
Many colleges have Veteran Resource Centers that help Veterans find jobs. Some examples include:
- Georgia Tech’s Veterans Resource Center: Provides employment assistance to student veterans and their families.
- Missouri State University Career Resources: Offers career development for veterans transitioning into civilian workplaces.
Check out colleges and universities in your area for resources near you.
Programs for Previously Incarcerated Individuals
Formerly incarcerated individuals often face the greatest barriers to employment, despite more than 93% of formerly incarcerated individuals between the ages of 25-44 looking for work. Programs focused on second-chance hiring, which the WOTC targets specifically, offer employers structured ways to connect with these individuals, as well as training and support for all parties. This results in an excellent way to find WOTC-eligible employees and to participate in reintroduction.
National Resources
- Center for Workforce Inclusion: Helps formerly incarcerated individuals secure stable jobs and connects them with participating employers. Check out this website for more information about programs in your state.
State and Local Programs
Many states offer programs for formerly incarcerated individuals. Some examples include:
- Georgia’s Walking the Last Mile Program: Focuses on helping individuals nearing release find meaningful employment.
- Operation New Hope: Provides job readiness and placement services for formerly incarcerated individuals in Florida.
Employers also can consult comprehensive resources like The Legal Action Center Clearinghouse for guidance on hiring individuals with past convictions.
Summer Youth Programs
The National Youth Employment Coalition (NYEC) shares tools and resources for hiring summer youth and young adult workers, one of the targeted groups for the WOTC, in designated communities. Visit NYEC’s website for rules, requirements, and resources.
A qualified Summer Youth Employee for the WOTC credit must follow these requirements. They must be:
- At least 16 years old, but under 18 on the hiring date or on May 1st (whichever is later) and
- Only perform services for the employer between May 1st and September 15th (was not employed prior to May 1st) and
- Reside in an Empowerment Zone (EZ)
NetTax’s WOTC Portal
Looking to streamline and organize the process after you find and hire WOTC-eligible employees? Our WOTC Portal helps you track the eligibility of your new hires, report on earned tax credits, file to the state electronically, and stay compliant through automatic reminders.
Businesses in Empowerment Zones
Businesses in federally recognized Empowerment Zones should explore hiring from their local communities. If a company and the employee are located in an Empowerment Zone, the company can claim WOTC credits.
By hiring locally from these areas, businesses not only foster a sense of community but also unlock valuable WOTC credits. Check out the Empowerment Zone Address Locator Tool to see if your company is an Empowerment Zone.
Temporary Staffing Agencies
Temporary staffing agencies are another excellent channel for hiring WOTC-eligible candidates. Many individuals within target WOTC categories—such as the long-term unemployed, veterans, or individuals from Empowerment Zones—work with staffing agencies to re-enter the workforce.
Some temporary staffing agencies proactively identify WOTC-eligible employees, making it easier for employers to claim the credit. However, note that in order to claim the credit, the employee must be a W-2 employee, not a 1099 employee.
Workforce Development Agencies
Workforce development agencies can be helpful resources for discovering WOTC-eligible employees. Many of these organizations focus on aiding disadvantaged groups with job training, skill development, and placement services.
- For more information on state workforce agencies, visit https://www.naswa.org/membership/workforce-agencies
Make sure to check online for any local workforce development agencies near you.
Maximize Benefits When You Find WOTC-Eligible Employees
Navigating the WOTC can feel overwhelming, but you don’t have to go it alone. NetTax specializes in helping businesses identify WOTC-eligible employees, manage documentation, and secure the maximum tax credits available. We’re here to help simplify the process so you can receive the savings you qualify for. Contact us today!