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Hire Certain Qualified Emplyees...May Get Big Tax Credit

Updated: Jan 4, 2023

Last week I picked on some stupid laws Congress has passed. Now I want to focus on something good that Congress has done. It’s called the Work Opportunity Tax Credit (WOTC). Designed to encourage employers to help lift folks out of needing various federal assistance and become self- sustaining.

The WOTC is based on the number of hours worked and wages earned in the first year of employment. The credit can be as low as $1,500 per qualifying employee all the way up to $9,600 for each qualifying employee. Got your attention yet? Here is a list of some of the targeted groups:

Qualified IV0A Temporary Assistance for Needy Families (TANF) recipients. Consists of folks who receive assistance from a state plan approved under Part A of Title IV of the Social Security relating to TANF.

Qualified veterans (including disabled veterans). The veteran must be unemployed for at least four weeks, but less than six months in the one-year period ending on the hiring date.

Ex-felons. Must be hired within a year of being convicted of a felony or being released from prison.

Vocational rehabilitation referrals. Someone with a physical or mental disability referred to the employer during or after rehabilitative services under certain programs.

Supplemental Nutrition Assistance Program (SNAP) recipients. Covers members of a family that received SNAP benefits for the previous six months or at least three of the previous five months.

Supplemental Security Income (SSI) recipients. Any person who received SSI benefits within 60 days of hiring date.

Qualified long-term unemployment recipients. Someone who has been unemployed for not less than 27 consecutive weeks at the time of hiring and received unemployment compensation during that time.

WARNING! To qualify for the WOTC, there is a very specific certification process where the employer is required to obtain certification that an individual is a member by filing form 8850 with the Department of Labor. This form must be filed within 28 days after the eligible worker begins work.

Have you heard? Psalm 32:7 says, “You are my hiding place. You will preserve me from trouble. You will surround me with songs of deliverance.”

Kelly Bullis is a Certified Public Accountant in Carson City. Contact him at 882-4459. On the web at Also on Facebook.

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