Unlocking Hidden Profit: Why Security Guard Companies Should Leverage the Work Opportunity Tax Credit (WOTC)
Marcel Abandonato, MJA & Associates, CALSAGA Associate Member
In today’s security industry, margins are tighter, labor costs are rising, and competition is more intense than ever. Security guard companies are constantly hiring—and that creates a powerful, often overlooked opportunity to significantly increase profitability through the Work Opportunity Tax Credit (WOTC).
For many CALSAGA members, WOTC isn’t just a tax credit—it’s a strategic advantage that can directly improve bottom-line performance.
What is WOTC—and Why It Matters to Security Companies
The Work Opportunity Tax Credit is a federal incentive designed to reward employers who hire individuals from certain targeted groups, including veterans, individuals receiving government assistance, and those facing barriers to employment.
For security companies that hire at scale, this is especially relevant.
- Credits typically range from $2,400 up to $9,600 per eligible employee
- There is no limit on the number of employees you can claim
- Credits can be carried forward up to 20 years if unused
With high hiring volume, even moderate participation can generate tens—or hundreds—of thousands of dollars annually.
The Direct Impact on Profitability
WOTC is one of the few programs that provides dollar-for-dollar reductions in federal tax liability, immediately improving cash flow and margins.
Consider this:
- A company hiring 50 employees annually with just 15 qualifying hires could generate $36,000+ in tax savings per year
- Many industries see ~20% of new hires qualify for WOTC
- Credits can reach up to 40% of first-year wages for eligible employees
For security guard firms with constant recruiting needs, this translates into:
- Lower cost per hire
- Increased operating margins
- Additional capital to reinvest in growth
In some cases, companies have seen profitability increase significantly simply by capturing credits they were already eligible for.
Seamless Integration: Making WOTC Effortless
The key to unlocking WOTC at scale is automation and integration. Modern WOTC solutions can:
- Embed screening directly into your onboarding workflow
- Integrate with staffing and HR platforms
- Automate form completion and submission
- Track certifications and maximize eligible credits
- Provide real-time reporting on financial impact
When implemented correctly, WOTC becomes a “set-it-and-forget-it” profit center, not an administrative burden.
Why Security Companies Are Uniquely Positioned
Security guard firms are one of the best industries to benefit from WOTC because they:
- Hire continuously
- Employ large hourly workforces
- Experience natural eligibility across applicant pools
- Operate on margins where every dollar matters
WOTC aligns perfectly with the high-volume hiring model of the security industry—making it one of the most impactful credits available.
Call to Action: Turn Hiring Into Profit
If your company is hiring—and most security firms are—you are likely already eligible for significant WOTC credits.
The question is: Are you capturing them?
MJA & Associates, Inc. specializes in helping security and staffing companies:
- Maximize WOTC credits
- Integrate seamlessly into existing onboarding systems
- Eliminate administrative burden
- Provide full compliance and audit support
- Deliver clear reporting on ROI and profitability impact
Don’t leave money on the table.
Contact MJA & Associates today to learn how your organization can turn hiring into a profit center and immediately boost your bottom line.
Contact Marcel Abandonato at 951.272.8294 or marcel@mja-associates.com.
Marcel Abandonato is the President and CEO of MJA & Associates, Inc., a leading provider of Work Opportunity Tax Credit (WOTC) consulting and compliance services. For more than two decades, Marcel has worked with businesses across the country to unlock millions of dollars in federal tax credits by implementing compliant, efficient, and scalable WOTC programs.
Marcel is widely regarded as a subject-matter expert on WOTC legislation, program renewals, and best practices—particularly for security firms,staffing firms, multi-state employers, and organizations with high-volume hiring. Under his leadership, MJA & Associates partners with leading HR and staffing technology platforms to modernize WOTC screening and processing, helping employers improve participation rates and maximize return on investment.







