The Work Opportunity Tax Credit (WOTC) was created in 1996 as part of comprehensive welfare reform. Welfare recipients were joining the job market, and the government needed to support employers who incurred additional hiring and training costs when employing individuals who faced significant barriers to entering and succeeding in the workforce.
In the first few years of the WOTC program, approximately 90% of participants were from households receiving Temporary Assistance to Needy Families (TANF) or other Title IV-A services. In 2010, approximately 68% of participants were in public assistance programs, including welfare, food stamps, and Social Security Income (SSI); 32% of participants came from other target groups, such as veterans, ex-offenders, and long-term unemployed individuals. As of 2025, the WOTC program also includes groups such as disconnected youths and individuals impacted by natural disasters.
The National Employment Opportunity Network is working to expand the WOTC program to include Supplemental Security Disability Insurance (SSDI) recipients, residents of Opportunity Zones, and foster youth. The organization is also focused on increasing the current age limit of food stamp recipients.
About NEON
The National Employment Opportunity Network (NEON) is a nonprofit organization dedicated to supporting cost-effective government incentives that encourage employers to hire from groups that have historically experienced difficulty securing and retaining jobs. The modest cost of these incentives is significantly less than the savings on entitlement programs and the addition of taxpayers to the tax system.
NEON’s members are from companies that provide services to other companies that are focused on hiring from historically underrepresented groups. The members support staffing outreach and administer government incentives that help offset the costs of training and retaining new hires who lack sufficient education, skills, or experience to succeed in a role.
NEON supports legislation such as the WOTC and related state and local incentives. Along with supporting enhancements to existing statutes and new laws, the organization works closely with the U.S. Department of Labor (DOL) and state and local agencies to help ensure that the processes and bureaucracy associated with such programs balance sustaining the integrity of the programs and keeping the requirements for administration reasonable.
NEON and the WOTC Program
As the leading national voice on hiring tax incentives, NEON has played a significant role in the development and continuation of the WOTC program. The organization works closely with the IRS, DOL, and State Employment Security Agency (SESA) to ensure the program and any modifications are efficiently administered.
NEON is comprised of Service Bureaus that promote the WOTC program and help employers effectively manage the recruitment and employment of WOTC-eligible new hires who are on public assistance programs. The services include:
- Informing employers about key program performance indicators, such as higher retention rates for entry-level employees hired through the WOTC program.
- Educating employers on how hiring tax incentives offset the extra costs of mentoring and training eligible new hires to integrate into the company’s workforce.
- Helping employers establish internal management practices that ensure WOTC compliance, especially the requirement for employees to complete Form 8850 Pre-Screening Notice and Certification Request for the Work Opportunity Credit as part of the job application process, so that employers can file the document with the State Workforce Agency (SWA) by the deadline.
MJA & Associates Supports WOTC Program Expansion
As a tax credit processing firm with over 20 years of experience, MJA & Associates supports expanding the WOTC program:
- The WOTC program helps individuals in historically underrepresented groups enter the workforce, reducing reliance on government assistance programs.
- Mentoring and training new hires helps them develop skills and gain experience for long-term employment.
- Providing tax incentives for employers to hire individuals from certain demographics supports workforce diversity and inclusion.
Take Advantage of Tax Credit Programs
Let MJA & Associates handle your tax credit processing and management needs to maximize savings. Reach out today.
