Are WOTC Tax Credits Worth Your Time?

Adam Woodward
time is money
Reading time 2 Mins
Published on Aug 14

Work Opportunity Tax Credits have been around since 1996, giving employers an incentive to hire qualified individuals that face challenges gaining employment, by offering federal tax credits against corporate income tax. Currently the program is available in all 50 States and is highly utilized by major corporations. At this time the target groups range from Summer Youth Employee to Unemployed Veterans.

In order for an employer to benefit from the credit, one must properly screen and file paperwork with the appropriate State Workforce Agency. Unfortunately, the majority of employers forgo the credit due to the high complexity of the system.

Sheakley has developed a proprietary method to pre-screen your applicants for a possible WOTC tax credit. We look at every newly hired employee to determine if they are eligible for a tax credit savings. Once the potential tax credit is identified, we promptly generate all the necessary documentation in order to receive the credit from the government. This will make your workflow exceedingly simple since we’ll do all the work!

Below is an easy formula to calculate the profitability of WOTC’s:


Step 1How many employees are hired per year?100 New Hires
Step 2Multiply the number of employees by the 15% qualifying ratio.15 Qualifying New Hires
Step 3Multiply Qualifying New Hires by average tax credit of $2,400.Employers annual projected tax credit savings $36,000.


Sheakley will screen and verify your new-hires for potential tax credits in a timely manner. They will process all government paperwork and track the certificates’ status to State approval. Sheakley will also report all financial results, getting you on the road to the maximum tax credit possible.

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