for Employers

WOTC is a federal tax credit program available to employers who hire employees from "targeted" groups which have historically had difficulty in finding employment. The tax credit is used to reduce the federal tax liability of private, for-profit employers. This program covers only new hires - the employee may not have worked for that employer in the past.

Both credits are designed to help individuals facing barriers to employment move into gainful employment by encouraging employers in the private sector to hire from among several groups of workers. The tax credit applies only to new workers who are hired during the prescribed time periods. Whether the worker was certified under WOTC at the time of the original hire is irrelevant.