What is the Work Opportunity Tax Credit (WOTC)?
The WOTC has two purposes:
- To promote the hiring of individuals who qualify as a member of a target group (See Target Group Definitions below)
- To provide a federal tax credit to employers who hire these individuals
- WOTC can provide up to $4,800 in a one year period in tax relief for each qualifying new hire (or up to $9,000 for long term family assistance recipients)
- Full-time, part-time and temporary employees make a business eligible to receive the tax credit
- Employers may claim a tax credit on an unlimited number of qualifying new hires
- Easy application process
- The Employment Development Department (EDD) is the Work Opportunity Tax Credit certifying agency for California employers.