The Work Opportunity Tax Credit (WOTC) is awarded to employers for hiring from ten target groups. Some of the most commonly certified (WOTC) groups are recipients of federal public aid, such as food stamps, family assistance (TANF) or social security. Chances are you’ve hired someone in this category without ever knowing it.
Over 19 million households received SNAP (food stamps) nationwide in 2018, USDA reports say. More than a million families qualified for family assistance funding, according to the Department of Health and Human Services.
When you hire from these segments, you could earn up to $2400 per eligible new hire. New hires must work at least 120 hours in their first year of employment. Qualifications include the following:
SNAP (food stamps) Beneficiaries
- At least 18 years AND
- Member of family that received SNAP within six months before hire OR for three to five of the previous six months
- Received SSI benefits within 60 days of date of hire
Long Term Family Assistance (TANF) Recipients
- Received assistance under a IV-A program for at least 18 consecutive months before hire date, OR
- Received assistance for 18 months after 8/5/1997 and it’s been under 2 years since the end of the earliest of the 18-month period, OR
- No longer eligible for aid due to Federal or State laws limiting maximum time that payments are allowed and it’s been under two years since cessation