Tax Credit

Work Opportunity Tax Credit

The Work Opportunity Tax Credit (WOTC) provides tax relief to employers who hire full-time, part-time or temporary employees from specifically targeted groups that have employment barriers.

The WOTC can provide tax credit under the following conditions:

• A 40 percent credit on the first $6,000 of wages in the first year if the employee works at least 400 hours for a maximum tax credit of $2,400
• A 25 percent credit on the first $6,000 of wages in the first year if the employee works at least 120 hours for a maximum tax credit of $1,500
• Qualified wages for the Summer Youth target group are capped at $3,000 for a maximum tax credit of $1,200
• For the disabled veteran group:
• A 40 percent credit on the first $12,000 of wages in the first year if the employee works at least 400 hours for a maximum credit of $4,800
• A 25 percent credit on the first $12,000 of wages in the first year if the employee works at least 120 hours for a maximum credit of $3,000
• For the long-term family assistance group:
• A 40 percent credit during the first year of employment on the first $10,000 an employee earns for a maximum credit of $4,000
• A 50 percent credit on the first $10,000 an employee earns during the second year of employment

Employer Benefits

• The hiring decision is made by the employer
• Qualified individuals may be hired
• Up to $9,000 in potential tax credits per new hire
• Reduced recruitment and training costs
• No restrictions on number of qualified hires
• Credits are applied to taxes due
• Unused tax credits may be carried over
• Minimal paperwork to claim tax credit

For more information, please visit these two links:

http://www.kansascommerce.com/DocumentView.aspx?DID=682  and
http://ks-kdoc.civicplus.com/index.aspx?NID=2

For more details, please contact:   Joyce Heiman, Work Opportunity Tax
Credit Program Manager, Kansas Department of Commerce, Ph: 785-296-7435  or email