A service-disabled veteran owned company with a mission to help out-processing military personnel and veterans find employment, Contract Professionals, Inc. (CPI) initiated a comprehensive effort to take advantage of the federal government’s Work Opportunity Tax Credit (WOTC) more than six years ago. So what exactly is the WOTC? And what does it mean for our veterans and other potential candidates?
Launched in 1996, the WOTC is a federal tax credit available to employers for hiring individuals from certain groups who have consistently faced significant barriers to employment. WOTC helps specific workers including veterans and individuals from other targeted groups. One of the goals of the WOTC is assisting individuals in earning a steady income, while participating employers are able to reduce their income tax liability. The purpose of the program is to help underrepresented individuals, which includes our veterans, gain employment.
“The WOTC program gives CPI additional leverage, as we recruit and employ veterans from all across the United States,” said Steve York, military veteran and CEO & Founder, Contract Professionals, Inc. There are also other positive implications for companies like CPI when they take advantage of the WOTC. “Because many of our clients and potential clients have developed specific spends or budgets to employ our veterans, the WOTC is an attractive benefit for everyone involved.”
CPI continues to develop new partnerships with companies who are dedicated to veteran hiring and the WOTC is part of that process. “The WOTC is spurring the economic growth of any company that is willing to put the hard work into diversifying their work force, which includes hiring our nation’s veterans,” said Jack Van Tiem, President, CPI. “CPI has been a part of that process for more than 41 years and we will continue to do so for decades to come.”
WOTC can also help other qualified job seekers obtain employment by offering an incentive to employers who are considering hiring them. Other qualified job seekers include TANF recipients, SNAP (food stamp) recipients, Vocational Rehabilitation participants, ex-offenders, SSI recipients, and individuals who live in Empowerment Zones or Rural Renewal Counties. WOTC joins other workforce programs that incentivize workplace diversity and facilitate access to good jobs for American workers.
Employers claim about $1 billion in tax credits each year under the WOTC program. There is no limit on the number of individuals an employer can hire to qualify, in order to claim the tax credit. The ultimate goal for CPI is to put our nation’s veterans to work and keep them there. The WOTC is a part of that plan, one new veteran hire at a time.