Employer's Guide to the Work Opportunity Pportunity Tax Credit is a 9-page legal document that was released by the U.S. Department of Labor - Employment & Training Administration on August 1, 2014 and used nation-wide.
Q: What is the Work Opportunity Tax Credit?
A: The Work Opportunity Tax Credit (WOTC) is a federal tax credit available to employers who hire individuals from specific targeted groups.
Q: Who qualifies for the Work Opportunity Tax Credit?
A: Individuals from specific targeted groups, such as veterans, long-term unemployed individuals, ex-felons, and recipients of certain government assistance programs.
Q: How much is the Work Opportunity Tax Credit?
A: The amount of the tax credit depends on the target group of the individual hired and the number of hours worked by the employee.
Q: Is there a deadline to claim the Work Opportunity Tax Credit?
A: Yes, employers must submit their Form 5884 within 28 days after the eligible employee begins working.
Q: Are there any limitations or restrictions on the Work Opportunity Tax Credit?
A: Yes, the credit is subject to various limitations, such as the number of qualified employees an employer can claim credit for and the amount of wages eligible for the credit.
Q: Can the Work Opportunity Tax Credit be carried forward or back?
A: No, the credit cannot be carried forward or back, but it can be used to offset the employer's income tax liability for the current year.
Q: Are there any other tax incentives available for employers who hire individuals with disabilities?
A: Yes, in addition to the Work Opportunity Tax Credit, there are other tax incentives such as the Disabled Access Credit and the Barrier Removal Tax Deduction.
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