What is Work Opportunity Tax Credit (WOTC), Should you apply for WOTC?
The WOTC (work opportunity tax credit) is jointly administered through the Internal Revenue Service (IRS) by the U.S. Treasury and the Department of Labor (DOL). The Internal Revenue Service (IRS) is responsible for claiming the credit by managing tax-related requirements while the Department of Labor (DOL) grants policy guidance and funding to state agencies that look after the certification process for work opportunity tax credit.
Read the complete blog on What is Work Opportunity Tax Credit (WOTC), Should you apply for WOTC? here:-
Types of employees eligible for Work Opportunity Tax Credit
An employer can only take the advantage of the Work Opportunity Tax Credit if they hire employees from certain targeted groups such as:
Individuals who receive temporary assistance for needy families (TANF) benefits under Part A, Title IV of the Social Security Act
Qualified veterans, including those receiving supplemental nutrition assistance program (SNAP) benefits, those who are unemployed, and those who are unemployed and entitled to compensation from a service-connected disability
Designated community residents who are at least 18 and under 40 and live in an empowerment zone, enterprise community, or renewal community
Individuals with physical or mental disabilities who have been referred for work after completing rehabilitative services
Summer youth employees
Supplemental nutrition assistance program (SNAP) recipients
Supplemental Security Income (SSI) recipients
Long-term family assistance recipients
Qualified long-term unemployment recipients
Read Work Opportunity Tax Credit Questionnaire
Which businesses are eligible for the Work Opportunity Tax Credit?
Any business, irrespective of the industry and size is eligible for the Work Opportunity Tax Credit under the program. And there is also no limit for the number of employees a business can hire for being eligible for the Work Opportunity Tax Credit program. And apart from all this, there is no cap set for the amount of credits that can be claimed by the business under the Work Opportunity Tax Credit program.
How can we calculate WOTC?
The amount of the WOTC is calculated as a percentage of qualified wages paid to an eligible worker during the eligible employee’s first year of employment. An employer may claim a credit equal to 40% of the eligible employee’s qualified wages if the eligible worker works at least 400 hours during the first year of employment. If the eligible employee works fewer than 400 hours but at least 120 hours, the employer may claim a credit equal to 25% of the eligible employee’s wages. If the eligible employee works fewer than 120 hours, an employer may not claim the WOTC.
Read How to claim the Work Opportunity Tax Credit for an Employee
How can Nskt global help?
NSKT Global is one of the top consulting firms which provides services of Work Opportunity Tax Credit. We at NSKT Global help in clearing the screening for the WOTC and improving compliance rate and simply data collection. We help save time and reduce the stress of the client who wishes to apply for the WOTC. We also offer benchmarking and analytics tools that can help employers forecast their tax credits.
Get FREE 20 min Tax Consultation to better understand what WOTC is
NSKT Global (USA Office)
1564 Market Place Blvd Suite 400 PMB 328
Ocean Isle Beach, NC 28469
Phn:- 888 701 675
888 701 NSKT
NSKT Global (UAE Office)
Level 14, Boulevard Plaza Tower 1,
Downtown, Dubai, UAE PO 334155
Phn +971 44 394 263
Whatsapp +971 55 171 2487
At NSKT Global we provides the complete range of advisory services to the SMEs as well as to the established businesses. Dealing in the industry for over 10 years. In countries across globe Namely UAE, USA and India.
This release was published on openPR.
Permanent link to this press release:
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.
You can edit or delete your press release What is Work Opportunity Tax Credit (WOTC), Should you apply for WOTC? here
News-ID: 2448586 • Views: 524
More Releases from NSKT Global
Taxpayers are facing a long list of tax changes for the 2022 tax year
Smart taxpayers will start planning for those now Tax planning is an important part of finances for both the individual as well as a business. However proper tax planning requires a lot of information regarding the tax changes and tax laws in the country. Another year of fighting with the Coronavirus has led to several changes in the tax law for the year 2021. While we all plan for taxes at
Fraud Risk Assessment Templates and what actions to take ? by NSKT Global
Using the fraud risk assessment matrix in the Fraud Risk Management Guide (ACFE) as your foundation, this spreadsheet provides a risk assessment matrix for you to document the organization's fraud risks and controls. The template automatically creates a heat map showing the significance and likelihood of each identified fraud exposure, a fraud risk ranking page displaying each fraud risk exposure from most to least severe, and a control-activities matrix
What is SOP in Business? Importance of SOP ?
With a standardized set of procedures, or SOP from Business Advisory any firm- small, medium, or large can significantly reduce the time required for carrying out operations, increase the productivity of the team, eliminate induced errors and reliance on anybody, and improve industry compliance. This will increase the profitability of the firm and provide a defined path for the solution creation, and protect employees in a healthy and safe environment. Read
What is the eligibility of Employee Retention Tax Credit for business in USA
Employee Retention Tax credit (ERC) is a refundable tax credit for the employees against certain employment taxes which is equal to 50% of the qualified wages an eligible employer pays to employees after March 12, 2020, and before January 1, 2021. The eligible employers can get immediate access to the credit by reducing employment tax deposits they are otherwise required to make. Also, if the employer's employment tax deposits are
More Releases for WOTC
Emerald Software and TaxBreak announce strategic partnership
Emerald Software Group, a leading publisher of business process driven workforce management solutions, and TaxBreak, a leading supplier of tax credit processing and revenue recovery services, announce today that the firms have formed a strategic partnership. The goal of the Emerald Software–TaxBreak alliance is to automate and maximize the tax credits recovered by their joint customers. Under the partnership, Emerald Software Group will provide its customers with an