Are you hiring? If so, you should know that hiring someone who has been receiving SNAP and/or unemployment benefits (including many who lost their jobs due to the pandemic) might qualify you to receive the Work Opportunity Tax Credit (WOTC). There are restrictions, but the program is worth looking into.
The Work Opportunity Tax Credit is a Federal tax credit that rewards employers for hiring individuals from certain targeted groups who have consistently faced significant barriers to employment. These groups include, among other categories: veterans, ex-felons, SSI recipients, and persons who have been unemployed for 27 consecutive weeks or more.
The Work Opportunity Tax Credit is authorized until December 31, 2025.
The WOTC fact sheet offers an overview of key information about the tax credit.
For additional information about WOTC and eligible targeted groups, see https://www.irs.gov/businesses/small-businesses-self-employed/work-opportunity-tax-credit .
Consult your tax advisor to decide whether the WOTC is right for your business.