WOTC screening, also known as Work Opportunity Tax Credit screening, is a process used by employers to determine if their potential new hires are eligible for tax credits provided by the federal government. The WOTC program is designed to encourage employers to hire individuals from certain target groups who face barriers to employment, such as veterans, individuals with disabilities, and those receiving government assistance.
Employers typically conduct WOTC screening by having applicants complete a pre-screening questionnaire that asks about their eligibility for the tax credit program. This information is then used to determine if the individual qualifies for WOTC benefits. If the applicant is eligible, the employer can claim tax credits based on the individual's wages and other factors.
WOTC screening is a voluntary process for employers, but it can provide financial incentives for hiring individuals from targeted groups. It is important to comply with all federal guidelines and regulations when conducting WOTC screening to ensure accuracy and minimize the risk of audits or penalties.
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