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34 PalletCentral • November-December 2021 palletcentral.com Gene Marks is a past columnist for both The New York Times and The Washington Post, Gene now writes regularly for The Hill, The Philadelphia Inquirer, Forbes, Inc. Magazine, Entrepreneur Magazine and Fox Business. This article originally appeared in The Hill. Gene has written 5 books on business management, specifically geared towards small and medium sized companies. He was also a popular speaker at the 2020 NWPCA Annual Leadership Conference. T he Work Opportunity Tax Credit (WOTC) is a federal tax credit available to employers who invest in American job seekers who have consistently faced barriers to employment. Employers may meet their business needs and claim a tax credit if they hire an individual who is in a WOTC targeted group, which includes qualified veterans, ex-felons, among others. Employers must apply for and receive a certification verifying the new hire is a member of a targeted group before they can claim the tax credit. After the required certification is secured, taxable employers claim the WOTC as a general business credit against their income taxes, and tax- exempt employers claim the WOTC against their payroll taxes. WOTC is authorized until December 31, 2025 (Section 113 of Division EE of P.L. 116-260 — Consolidated Appropriations Act, 2021). Targeted Groups: Employers can hire eligible employees from the following target groups for WOTC. • Qualified IV-A Recipient • Qualified Veteran • Ex-Felon • Designated Community Resident (DCR) • Vocational Rehabilitation Referral • Summer Youth Employee • Supplemental Nutrition Assistance Program (SNAP) Recipient • Supplemental Security Income (SSI) Recipient • Long-Term Family Assistance Recipient • Qualified Long-Term Unemployment Recipient Source: U.S. Department of Labor. Work Opportunity Tax Credit. Retrieved on October 28, 2021. www.dol.gov/ agencies/eta/wotc Tax Credit for Employers