If you hire veterans, you should take advantage of the Work Opportunity Tax Credit (WOTC) program. The federal tax incentives save companies money and create job opportunities for veterans and other targeted groups facing barriers to employment. The goal is to increase employment rates and reduce reliance on government assistance.
The WOTC program requires identifying eligible candidates, completing certification paperwork, and reaching employee benchmarks. Then, companies can claim tax credits for part of the wages paid to qualified employees.
Reducing the unemployment rate or underemployment rate of veterans and other individuals in targeted groups benefits the individuals and their families, companies, and the government. Gainful employment reduces or eliminates the government compensation the individuals receive when not working.
Veteran Qualifications for the WOTC Program
Veterans who meet these qualifications are eligible for the WOTC program:
- A member of a family receiving support from the Supplemental Nutrition Assistance Program (SNAP) for at least 3 months during the 15-month period ending on the hiring date
- Unemployed for at least 4 weeks (need not be consecutive) but less than 6 months during the 12-month period ending on the hiring date
- Unemployed for at least 6 months (need not be consecutive) during the 12-month period ending on the hiring date
- Entitled to compensation for a service-connected disability and hired not more than 1 year after being discharged or released from active duty in the U.S. Armed Forces or
- Entitled to compensation for a service-connected disability and unemployed for at least 6 months (need not be consecutive) in the 12-month period ending on the hiring date
Maximize Your Company’s WOTC Savings
Partnering with MJA & Associates ensures you maximize WOTC savings while supporting those who served our country. Connect with us to start saving today.
