WOTC as an employee

[esmeralda204]

In the past few years I have worked hourly retail jobs, where employers urge workers to apply for the WOTC program. What are the benefits to workers of this program?

I am an older worker, but not disabled or otherwise eligible for the program. However, I often find at work that employers will constantly cut my schedule back to only 10 hours/week. And in job interviews, employers seem to assume that I am limited to working only 10 hours per week. I suspect they are trying to claim the $26000 per year credit, while giving me only the minimum hours required for eligibility. I also don't receive much (if any) training. In one retail job, we were paid weekly and my checks were usually so small that my employer did not have to withhold income tax.

[Denisev1220]

The WOTC has two purposes: To promote the hiring of individuals who qualify as a member of a target group. To provide a federal tax credit of up to $9,600 to employers who hire these individuals.

Aside from this... 

Do employees benefit from WOTC?

Although the tax credit only applies to employers, the WOTC program may benefit employees by making career opportunities available to those who otherwise might have had a hard time landing a job. Such individuals include ex-felons, veterans and food stamp recipients.

I see no benefit.

[IrmaN]

@esmeralda204 

In general, the WOTC is equal to 40% of up to $6,000 of wages paid to, or incurred on behalf of, an individual who: is in their first year of employment; is certified as being a member of a targeted group; and. performs at least 400 hours of services for that employer.

The Work Opportunity Tax Credit (WOTC) can help you get a job. If you are in one of the “target groups” listed below, an employer who hires you could receive a federal tax credit of up to $9,600. This tax credit may give the employer the incentive to hire you for the job.

These are the target groups of job seekers who can qualify an employer for the WOTC:

1. Qualified recipients of Temporary Assistance to Needy Families (TANF).
2. Qualified veterans receiving Food Stamps or qualified veterans with a service-connected disability who:
   • Have a hiring date which is not more than one year after having been discharged or released from active duty OR
   • Have aggregate periods of unemployment during the one-year period ending on the hiring date that equal or exceed six months.
3. Ex-felons hired no later than one year after conviction or release from prison.
4. Designated Community Resident – an individual who has attained ages 18 but not 40 on the hiring date who resides in an Empowerment Zone, or Rural Renewal County.
5. Vocational rehabilitation referrals, including Ticket Holders with an individual work plan developed and implemented by an Employment Network.
6. Qualified summer youth ages 16 through 17 who reside in an Empowerment Zone.
7. Qualified Food Stamp recipients ages 18 but not 40 on the hiring date.
8. Qualified recipients of Supplemental Security Income (SSI).
9. Long-term family assistance recipients.
10. Qualified Long-Term Unemployment Recipients.

Hope this helps

[esmeralda204]

Thanks for the clarification. The $26000 figure came from a Google search of IRS rules. I wouldn't be eligible for the WOTC program, which leaves me wondering about the 10 hour/week employers seem to impose.