Ever wondered how to get up to $9000 for simply hiring an employee? Well here it is, a golden opportunity for the employers as well as the employees. A win-win solution for all. It is called The Work Opportunity Tax Credit (WOTC) program.

WOTC is a Federal tax credit incentive that the Congress provides to private-sector for-profit businesses for hiring individuals from twelve target groups. These are those who have consistently faced significant barriers to employment. The main objective of this program is to enable the targeted employees to gradually move from economic dependency into self-sufficiency as they earn a steady income and become contributing taxpayers.

While the participating employers are compensated by being able to reduce their federal income tax liability. WOTC joins other workforce programs that help incentivize workplace diversity and facilitate access to good jobs for American workers.

You can visit the following link to apply for this program: http://www.doleta.gov/business/incentives/opptax/

Who to Hire?

Here is the list of 12 kinds of individuals that businesses can hire to be eligible for this tax credit:

1. Long-term TANF Recipient. A member of a family that:

- Received or recently received Temporary Assistance to Needy Families (TANF) payments for at least 18 consecutive months ending on the hiring date, or

- Received TANF payments for any 18 months (whether or not consecutive) beginning after August 5, 1997, and the earliest 18-month period beginning after August 5, 1997 ended during the past 2 years, or

- Stopped being eligible for TANF payments during the past 2 years because federal or state law limited the maximum time those payments could be made.

2. Other TANF Recipient. A member of a family that is receiving or recently received TANF benefits for any 9-month period during the 18-month period ending on the hiring date;

3. Qualified Food Stamp Recipient. An 18-39 year old member of a family that received Food Stamps for the past 6 months, or received Food Stamps for at least 3 of the past 5 months;

4. Designated Community Resident. An 18-39 year old resident of one of the federally designated Empowerment Zones (EZs), Enterprise Communities (ECs), Renewal Communities (RCs), and for individuals who begin to work for an employer after May 25, 2007, this High-Risk Youth group has been renamed “Designated Community Resident” and expanded to include residents of Rural Renewal Counties;

Note: All Round I Enterprise Communities (ECs) including enhanced Enterprise Communities expired on December 31, 2004. Round II ECs are still in existence as are all the EZs;

5. Summer Youth Employee. A 16-17 year old EZ/EC or RC resident hired between May 1 and September 15;

Note: All Round I Enterprise Communities (ECs) including enhanced Enterprise Communities expired on December 31, 2004. Round II ECs are still in existence as are all the EZs;

6. Qualified Veteran. A veteran who is a member of a family that is receiving or recently received Food Stamps for at least a 3-month period during the past 15 months; and for individuals who begin to work for an employer after May 25, 2007, the veteran group is expanded to include “disabled veterans” who are entitled to compensation for a service-connected disability and who, during the one-year ending on the hiring date, were: a) discharged or released from active duty in the U.S. Armed Forces, or b) unemployed for a period or periods totaling at least 6 months. The first-year wages taken into account for these “disabled veterans” are capped at $12,000;

7. Vocational Rehabilitation Referral. An individual who completed or is completing rehabilitative services from a State certified agency, an Employment Network, or the U.S. Department of Veterans Affairs;

8. Qualified Ex-Felon. An individual who has been convicted of a felony and has a hiring date which is not more than one year after the last date on which he was so convicted or released from prison;

9. SSI Recipient. A recipient of Supplemental Security Income (SSI) benefits for any month ending during the past 60 day period ending on the hire date.

10. Hurricane Katrina Employee. This group does not require certification by the SWAs.

11. Unemployed Veteran. A veteran hired after 2008 and before 2011 who:

- Has been discharged or released from active duty in the U.S. Armed Forces at any time during the 5-year period ending on the hiring date, and

- Received unemployment compensation under state or federal law for at least 4 weeks during the 1-year period ending on the hiring date.

To be considered a veteran, the applicant must have served on active duty (not including training) in the Armed Forces of the United States for more than 180 days or have been discharged or released from active duty for a service-connected disability.

12. Disconnected Youth. An individual who is certified as:

1) having attained age 16 but not age 25 on the hiring date,

2) not regularly attending any secondary, technical, or post-secondary school during the 6-month period preceding the hiring date,

3) not regularly employed during such 6-month period, and 4) not readily employable by reason of lacking a sufficient number of basic skills.

Minimum employment or retention period. In addition to belonging to one of the 12 groups outlined above, all new adult employees must work a minimum of 120 hours to qualify for WOTC. Individuals hired as Summer Youth employees must work at least 90 days, between May 1 and September 15, to qualify for the credit.