29 Oct Work Opportunity Tax Credit Available Through Dec. 31, 2020
Posted at 23:12h in Human Resources White Papers 1 Comment
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 before Dec. 31, 2020, and work at least 120 hours for the employer during that first year. The credit is calculated as:
- 25% of the wages paid to an employee who worked between 120 and 400 hours; or
- 40% for an employee who worked more than 400 hours.