The Work Opportunity Tax Credit (WOTC) is a federal tax incentive that rewards employers for hiring individuals from certain target groups that face barriers to employment.
Employers can earn between $2,400 and $9,600 per eligible employee — but only if they know who qualifies and how to claim credits correctly.
Free Resource: Rockerbox offers a Free WOTC Optimization Audit to help employers discover missed credits and maximize ROI.
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WOTC Eligibility: Target Groups
The IRS and U.S. Department of Labor define the following groups as WOTC-eligible:
- Veterans (including those with service-related disabilities, unemployed, or receiving SNAP assistance)
- SNAP (food stamp) recipients
- TANF (Temporary Assistance for Needy Families) recipients
- Ex-felons
- Long-term unemployed individuals
- Vocational rehabilitation referrals
- SSI (Supplemental Security Income) recipients
- Summer youth employees (ages 16–17, in empowerment zones)
According to the U.S. Department of Labor WOTC program, these groups were chosen to encourage inclusive hiring and workforce development.
How Much is WOTC Worth for Each Group?
- Veterans with disabilities: up to $9,600
- Long-term TANF recipients: up to $9,000 over two years
- Other eligible groups: typically $2,400–$2,800 per hire
Example: A restaurant hires 15 workers, 6 of whom qualify for WOTC credits averaging $2,400 each = $14,400 in savings.
Why Employers Miss Out on WOTC Credits
Even with eligible hires, employers often miss credits due to:
- Not screening every new hire
- Submitting IRS Form 8850 late (after 28 days)
- Incomplete documentation
- Providers that process forms but don’t optimize
How Rockerbox Maximizes WOTC for Clients
Unlike standard providers, Rockerbox ensures:
- Higher screening completion rates
- Proactive state agency follow-up
- Focus on high-value target groups
- Automated compliance + payroll integration
- ROI-driven audits that uncover up to 40% more credits
Free WOTC Audit: Find Out If You’re Eligible
Think you’re capturing all the credits? Let’s find out. With Rockerbox’s Free WOTC Optimization Audit, you’ll see:
- Which employees qualify
- Missed credits from past hires
- How Rockerbox increases ROI compared to ADP, Equifax, and Experian
Schedule A Call Request A WOTC Audit
FAQs
What is WOTC eligibility?
WOTC eligibility refers to whether a new hire belongs to a target group defined by the IRS and Department of Labor as qualifying for tax credits.
How much can employers save per eligible hire?
Employers can save $2,400–$9,600 per employee, depending on the target group, wages, and hours worked.
Do all employees need to be screened for WOTC?
Yes. Employers should screen every new hire to ensure no eligible credits are missed.
Which industries benefit most from WOTC?
Restaurants, staffing agencies, retail, healthcare, and manufacturing see the greatest ROI due to frequent eligible hires.