What Is The Work Opportunity Tax Credit and How Can I Claim It?
The Work Opportunity Tax Credit (WOTC) is a federal tax credit available to employers that hire individuals from certain “targeted groups” that have consistently faced significant barriers to employment. An employer may claim the WOTC for wages paid to these individuals during their first year of employment, as long as they are hired on or before Dec. 31, 2020, and work at least 120 hours for the employer during that first year. WOTC is calculated as: 25% of the wages paid to…