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Up Week 02 Discussion – Work Opportunity Tax Credit (WOTC)


The WOTC allows employers to take a tax credit on the wages they pay workers in certain “targeted” groups. For a company to claim the tax credit, a worker whom they hire must fall under one or more of eight categories (listed below). The employer must also have the employees certified as such at the company’s unemployment office or jobs service.


  1. IV-A recipient
  2. Veteran
  3. Ex-felon
  4. High-risk youth
  5. Vocational rehabilitation referral
  6. Summer youth employee
  7. Food stamp recipient
  8. SSI recipient

Does the WOTC cause an unfair advantage in hiring when choosing between a candidate who qualifies the employer for the credit and a candidate who does not qualify the employer for the credit? Alternately, does it offer a social/economic benefit for the employer to be able to expand their workforce more rapidly at an affordable cost and for the perspective employee to be given an opportunity to enter the workforce and become self-sufficient?

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