WORK OPPORTUNITY TAX CREDITS
Kwantek Team
In the Security Industry, it’s common to hire employees that would qualify for Work Opportunity Tax Credits (WOTC). If your company has significant annual hiring volume, using these credits can help deduct tens of thousands of dollars from taxable income.
WOTC is a Federal Tax Credit available to most employers who hire and retain veterans and individuals from other groups with barriers to employment. Employers are eligible to reduce their federal income tax liability by an average of $1,000 per employee, with a credit potential up to $9,600 for some employees.
Who is Eligible for WOTC?
WOTC is available for employers that hire veterans and individuals from other groups with barriers to employment. This includes:
- Veterans – unemployed and other qualified
- Temporary Assistance for Needy Families (TANF) Recipients
- SNAP (food stamps) Recipients
- Ex-Felons
- Supplemental Security Income Recipients
This represents a massive opportunity for contract security companies to reduce their taxable income by thousands – and even hundreds of thousands of dollars. Let’s take a look at an example of a Kwantek client:
- 665 New Hires were WOTC Eligible
- 309 Received WOTC Certifications
- $904.22 average Tax Credit earned per certified employee
- $279,404.09 real Tax Credit to Employer
If you’re hiring veterans, ex-felons, or low-income employees, you could stand to deduct thousands of dollars each year from your taxes!
Click here to download a full report detailing everything you need to know about WOTC.