The Work Opportunity Tax Credit (WOTC) is likely the easiest tax credit your staffing firm is not using. This federal program offers $2,400 to $9,600 in tax credits per eligible hire in 10 target groups, including veterans, long-term unemployed, and Supplemental Nutrition Assistance Program recipients.
Many states offer tax credit programs that can piggyback with the WOTC program to increase companies’ tax savings. Staffing firms are encouraged to work with experienced tax professionals to properly handle these complex claims.
Why Most Staffing Firms Do Not Participate in the WOTC Program
Most staffing firms do not participate in the WOTC program because they do not think their new hires qualify for the target groups:
- Formerly incarcerated individuals or felons
- State assistance recipients
- Veterans
- Empowerment Zone or Rural Renewal County residents
- Referred individuals who completed a rehabilitation plan or program
- Individuals whose families receive Supplemental Nutrition Assistance Program (SNAP) benefits
- Supplemental security income (SSI) recipients
- Individuals whose families are SSI recipients
- Individuals experiencing long-term unemployment
Many staffing firm leaders do not participate in the WOTC program because they do not think their business qualifies. Having experienced tax professionals look into a staffing firm’s qualifications can significantly increase the firm’s tax savings for a stronger bottom line.
Work with a Tax Credit Processing Firm
If you’re unsure whether WOTC is a fit for your business, it’s time to reconsider. Tax credits like WOTC can be a powerful resource for staffing firms of all sizes, especially when managed by experts who understand the staffing industry and the nuances of these programs.
At MJA & Associates, we focus on helping staffing firms capture every eligible dollar by handling the entire tax credit process from start to finish. From eligibility reviews to paperwork submissions and state agency follow-ups, our team ensures nothing slips through the cracks.
With our contingency-based pricing model, you only pay when we deliver real savings. That means no upfront risk—just a clear path to potential tax credits that might otherwise go unclaimed. We’ve helped staffing firms across the country uncover savings they didn’t know existed, and we’re here to help you do the same.
Partner with MJA & Associates to see which tax credits your staffing firm qualifies for, maximize savings, and strengthen the bottom line.
