WOTC Small Business Hiring Credits

The federal government offers hiring-related tax credits to small and medium businesses. This is a great incentive for hiring and retaining talent. There are a number of small business hiring credits available today. The Work Opportunity Tax Credit (WOTC) is a category under which the most commonly known hiring tax credits fall. These are some of the WOTC credits that offset security liability or other taxes for businesses.

WOTC for Veterans

The WOTC for Veterans credit aims to help veterans who have been injured or disabled in the line of duty. Businesses can receive up to $9,6000 in credits for hiring those who have been injured. If a business hires a non-injured service member, they are possibly still eligible for up to $2,400 in credits. 

Ex-Felons

Businesses can receive credits for hiring ex-felons as well. An ex-felon must have been either convicted of a felony or released from prison after a conviction within one year of the hiring date. 

Qualified Long-Term Unemployment Recipients

Qualified long-term unemployment recipients have been unemployed for a minimum of 27 consecutive weeks as of the time of hire. They may have benefited from unemployment compensation for some or all of the duration. 

SSI Recipients

Individuals who receive Supplemental Security Income can also bring businesses a tax credit when hired. These people qualify for the credit if Social Security payments have been received for any month within 60 days of their date of hire. 

Designated Community Residents 

Designated Community Residents (DCRs) are individuals between 18 and 40 who live in an enterprise community, empowerment zone or renewal community and who remain living there after employed. HUD offers detailed maps to determine these covered locations in each state.

Qualified IV-A Recipients

Hired individuals who receive assistance under state Temporary Assistance for Needy Families (TANF) plans for 9 of the past 18 months may also qualify businesses for tax credits.