Frequently Asked Questions
The Work Opportunity Tax Credit (WOTC)
Who Qualifies for WOTC?
This credit is designed to incentivize employers to hire and retain individuals from certain target groups.
Here are the types of employees who qualify:
- Veterans
- Temporary Assistance recipients
- Food Stamp recipients
- People living in Empowerment Zones or Rural Renewal Counties
- Vocational rehabilitation referrals
- Ex-felons
- Supplemental Security Income recipients
- Summer youth employees living in Empowerment Zones
- The long-term unemployed
I Don’t Think This Program Is For Us. We Don’t Hire Many Veterans, Ex-Felons, or People on Government Subsidy Programs, If At All.
In reality, most employers are only assuming they don’t hire many WOTC qualifiers because they simply don’t normally ask their candidates and new employees if they are. In fact, national averages for auto dealerships show that for every 100 hires, generally about 10 of them will earn the dealership an average of $20,000 in tax credits!
Can We Earn a Credit on Re-Hires?
Unfortunately, no. The program is designed to encourage new hires that meet WOTC requirements.
Could We Get Into Legal Trouble With Anti-Discrimination Laws If We Use This Program?
Per John Boggs, Esq. of Fine, Boggs & Perkins, labor & employment law attorney:
“The Work Opportunity Tax Credit has been around for a long time and has been claimed by employers in virtually all industries, including auto dealerships. The proper steps have been automated in HotlinkHR to force best practices just like all of our other HR tasks. So as long as you have all candidates and new hires go through the process, you won’t be running afoul of any anti-discrimination laws.”
How Much Can We Expect to Get From This Program?
For every 100 employees you hire, national averages for auto dealerships suggest that you can expect to earn about $20,000 in tax credits.
Can I Get a Demo Of This Service?
Click here to schedule a brief demo of this service.
I Have More Questions. Who Can I Talk To?
Please use the chatbox below to ask your question and someone will get right back to you. Or please call 800-791-2700.
