The Small Business and Work Opportunity Act of 2007 has recently extended the WOTC program till August 31, 2011.
The Work Opportunity Tax Credit (WOTC) is an incentive provided by Government to employers who hire a certain targeted group of unemployed people that are less fortunate in getting a job due to various significant employment barriers. The employers can be informed by the members of of the target group about the tax credit they are eligible if they hire them.
The Welfare-to-Work Tax Credit is part of a WOTC program the purpose of which is mainly to help those members of the target group who are eligible for a job and also to encourage the employers to hire these qualified members of the target group by giving a tax credit.
The credit on the federal taxes can be as much as
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$1,200 each for hiring a summer youth
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$2,400 for every new adult who is hired
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$4,800 each for hiring a physically challenged veteran
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$9,000 each for hiring family assistance recipient but it can be claimed only after the completion of two years
The following comprise the target group:
During the 18-month period which ends on the hiring date; any member of the family that has received or receiving Temporary Assistance to Needy families (TANF) or benefits of Transitional Aid to Families with Dependent Children.
Food Stamps which were offered to or are being offered to qualified disabled veterans or a family whose one of the member are a veteran.
An ex-felon recently released.
The resident of one of the 105 federally designate Empowerment Zone/Renewal Communities should belong to the age group of 18 to 39 years.
An Employment Network, Commonwealth of Massachusetts or the U.S. Department of Veterans Services in which the vocational rehabilitation referral has completed or will shortly complete his rehabilitative services.
A Summer Youth Employee resident of Empowerment Zone/Renewal Community of age 16 to 17 years who is hired between May 1 and September 15.
The family member who is 18 to 39 years old and has recently received or is receiving the Food Stamps.
Supplemental Security Income (SSI) benefits recipient.
A recipient of long term family assistance.
