Updated online information from the IRS on prescreening job applicants is intended to help determine if hiring them would enable an employer to receive the federal Work Opportunity Tax Credit (WOTC), which is available to employers that hire designated categories of workers who face significant barriers to employment.
For employers facing a tight job market, the WOTC may help by offsetting some of the compensation costs associated with a new hire. "Those having a hard time finding employees for basic tasks and labor may want to keep the WOTC in mind," tweeted online training firm Overnight Accountant following the announcement from the IRS on Sept. 19.
The WOTC was first created as part of the Small Business Job Protection Act of 1996 and has been extended on a regular basis. In 2021, Congress authorized an extension of the WOTC until Dec. 31, 2025.
IRS Update Clarifies Prescreening Process of New Hires for Work Opportunity Tax Credit
SHRM | Sep 2022
How Can Employers Best Use the Work Opportunity Tax Credit?
SHRM | Oct 2022
Work Opportunity Tax Credits Can Increase Diversity and Reduce Labor Shortages
Krieg Devault | Aug 2022
Small Business Alert: Take Advantage of the WOTC for New Hires
GRF CPAs | Jul 2022
WOTC Services
SHRM Vendor Directory
Government Resources
IRS updates Information on tax credit helping businesses to hire certain categories of workers
Work Opportunity Tax Credit
IRS WOTC Home Page
Work Opportunity Tax Credit Fact Sheet
State WOTC Coordinators
DOL
EEOC Says Anti-Bias Laws Don't Block Employers from Using WOTC
Federal Work Opportunity Tax Credit Form 8850
EEOC Opinion Letter | Apr 2020
The Work Opportunity Tax Credit
Congressional Research Service | Sep 2018
About Some of the Targeted Groups
Military Veterans
Employing Military Veterans
SHRM Toolkit
People with Disabilities
What are some common myths about hiring people with disabilities that impede disability recruiting initiatives?
Where can employers find qualified applicants with disabilities?
How can HR help introduce more people with disabilities into the workforce?
SHRM HR Q&A
People with Criminal Histories
Employing Individuals with Criminal Records
SHRM Toolkit
Getting Talent Back to Work
SHRM Toolkit
Long-Term Unemployed
It's Time to Hire the Long-Term Unemployed
Inc. (limited free articles) | Feb 2021
What Is Long-Term Unemployment?
The Balance | Sep 2022
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