What new hires can qualify employers for WOTC?
• WOTC applies to new hires who begin work after September 30, 1997, and before July 1, 1998. • The new hire must belong to one of eight WOTC target groups, which include Social Security Income recipients and vocational rehabilitation referrals. • The WOTC for new hires employed 400 or more hours is 40% of qualified wages for the first year of employment; the credit for new hires employed 120 to 400 hours is 25%. Qualified wages are capped at $6,000 for all WOTC target groups except Summer Youth, whose wages are capped at $3,000.
