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Work Opportunity Tax Credit

The Work Opportunity Tax Credit (WOTC) is a federal tax credit accessible to employers hiring and retaining individuals from historically disadvantaged target groups. This initiative aims to foster workforce diversity and create job opportunities for those facing employment barriers.

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Handling the process can be complex, given the administrative burden and calculations required to obtain the credit. Sagemont Advisors’ WOTC platform is not only easy to use, but also streamlines the workload for hiring managers. Sagemont Advisors’ team of  experts ensure continuous WOTC compliance and optimization throughout the entire process.

What businesses are eligible for WOTC?

Businesses of all sizes and industries may be eligible to claim tax credits under the WOTC program, and there’s no cap on the amount of credits that a business can claim.

What businesses are eligible for WOTC?

Businesses of all sizes and industries may be eligible to claim tax credits under the WOTC program, and there’s no cap on the amount of credits that a business can claim.

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Which employees can an employer claim WOTC?

Qualified Veterans A member of a family that is a Qualified Food Stamp Recipient A member of a family that is a Qualified Supplemental Nutrition Assistance Program (SNAP) Benefits Recipient Qualified Ex-Felons, Pardoned, Paroled or Work Release Individuals Vocational Rehabilitation Referrals Qualified Summer...

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Which employees can an employer claim WOTC?

  • Qualified Veterans
  • A member of a family that is a Qualified Food Stamp Recipient
  • A member of a family that is a Qualified Supplemental Nutrition Assistance Program (SNAP) Benefits Recipient
  • Qualified Ex-Felons, Pardoned, Paroled or Work Release Individuals
  • Vocational Rehabilitation Referrals
  • Qualified Summer Youths
  • Qualified Supplemental Security Income (SSI) Recipients
  • Qualified Individuals living within an Empowerment Zone, Enterprise Community, Renewal Community, or Rural Renewal County
  • A member of a family that is a Qualified Temporary Assistance for Needy Families (TANF) recipient
  • A member of a family that is a Qualified Long Term TANF recipient
  • Qualified Long-Term Unemployment Recipients
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How do employers claim the tax credit?

To claim the credit, employers must first submit certain forms, including Form 8850 and 9061, to their State Workforce Agency (SWA) to certify that the employee is eligible for the credit. Once the SWA certifies the employee is eligible (and assuming the individual(s) are hired), employers can then calculate the tax...

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How do employers claim the tax credit?

To claim the credit, employers must first submit certain forms, including Form 8850 and 9061, to their State Workforce Agency (SWA) to certify that the employee is eligible for the credit. Once the SWA certifies the employee is eligible (and assuming the individual(s) are hired), employers can then calculate the tax credit they are entitled to at the end of the year based on the number of eligible employees hired, hours worked, and other factors. To claim the credit, employers must file Form 5884 when filing their U.S. federal income tax return.

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Why work with Sagemont Advisors?

Why work with Sagemont Advisors?

Sagemont’s web-based WOTC screening system improves screening completion rates and simplifies data collection. It’s easy to use for applicants and automatically skips sections of the WOTC questionnaire that may be irrelevant, helping applicants complete the form quickly and accurately.

Save time and effort with Sagemont’s platform

Switching from a manual WOTC screening process to Sagemont’s automated solution can help minimize the workload of hiring managers. It works on mobile devices, so there’s less paperwork and it has user-friendly features that make it more likely for applicants to complete the WOTC questionnaire so that your business can receive the maximum credit available.

Get Started with Sagemont Advisors