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Workforce Tax Credits
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Workforce Tax Credits through Employ America

 About Employ America    Client Solutions

Workforce Opportunity Tax Credit:  
is a Two-Tiered System Based on Retention:

Tier 1 Employee works 120 hours to 399 hours.

  • Credit is equal to 25% of qualified first year wages.
  • Qualified first year wages are capped at $6,000.
  • Maximum Credit: $1,500
    • Applies to all WOTC target groups except the New Disabled Veteran
    • Subgroup; and Summer Youth. Summer Youth wages are capped at $3,000 with a Maximum Credit $750.
    • See below for the New Disabled Veteran Subgroup.

Tier 2 Employee works 400 hours or more.

         Credit is equal to 40% of qualified first year wages.

         Qualified first year wages are capped at $6,000.

         Maximum Credit: $2,400

         Applies to all WOTC targeted groups except the New Disabled Veteran

         Subgroup; Summer Youth; and LTFA.

         Summer Youth wages are capped at $3,000 with Maximum Credit $1,200.S

         See below for the New Disabled Veteran Subgroup and Long-Term Family Assistance Recipient.

Tier 1 New Disabled Veteran Subgroup (works 120 hours to 399 hours.)

  • Credit is equal to 25% of qualified first year wages.
  • Qualified first year wages are capped at $12,000.
  • Maximum Credit: $3,000

Tier 2 New Disabled Veteran Subgroup (works 400 hours or more.)

  • Credit is equal to 40% of qualified first year wages.
  • Qualified first year wages are capped at $12,000.
  • Maximum Credit: $4,800

Long-Term Family Assistance Recipient - Maximum Credit over the 2 years is $9,000 with a Retention period = 400 hours each year.

  • First Year Tax Credit equal to 40% of qualified first year wages.  Qualified first year wages are capped at $10,000.Maximum Credit =$4,000.
  • Second Year Tax Credit equal to 50% of qualified second year wages. Qualified second year wages are capped at $10,000.Maximum Credit =$5,000.

Mandelbrott interview with Paul Solomon