Yes. The Work Opportunity Tax Credit was originally established as a temporary measure under the Small Business Job Act of 1996 to break down barriers for those individuals trying to get back into the workforce. Since then, the federal government has repeatedly reauthorized it, continuing to provide benefits to employers.
Yes. Since its inception in 1996, the WOTC has been renewed with bipartisan support for over twenty-five years. This long-standing commitment underscores its value and effectiveness in promoting employment opportunities for individuals facing barriers to work.
For qualified applicants, the standard process is to complete Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit, and to submit it to the appropriate State Workforce Agency within the first 28 days of the new employee’s start date. WOTC is calculated using Form 5884, and employers claim it as a general business credit on Form 3800 against income tax calculation. When working with BCC, however, we will take care of all the administrative paperwork.
Organizations across the United States, Puerto Rico, and the U.S. Virgin Islands can take advantage of this program. By hiring an employee who is certified as being a member of a targeted group, you may apply for the credit. For tax-exempt organizations, however, the WOTC may only be claimed for qualified veterans.
The credit is limited to the amount of business income tax liability or the employer’s share of Social Security tax owed. Based on the hours worked and wages paid, WOTC can save companies up to $9,600 per eligible employee in tax credits.
BCC offers seamless integration through a secure API (Application Programming Interface). This allows our systems to automatically and securely exchange data with yours. We use strong authentication, encryption, and monitoring to protect your information. This integration ensures efficient, real-time data updates, while also reducing manual input and errors.
You have the opportunity to access these legitimate government incentives while providing valuable employment opportunities to veterans, ex-felon, long-term unemployed workers, and other eligible groups.
Let our expertise guide you in claiming the WOTC benefits you’re entitled to, improving your bottom line while fostering a more inclusive workforce.
