Recently, we wrote an article, outlining the nine Work Opportunity Tax Credit (WOTC) target groups. Here we’ll be focusing on one of the higher volume target groups, SNAP or what was formerly known as food stamp beneficiaries. SNAP participants can qualify your company for as much as $2400 per eligible hire.

The requirements to qualify are twofold:

Candidates must be 18 to 39 years of age and a member of a family receiving SNAP benefits.

They received benefits either a) six months prior to their hire date, or b) at least three of the five months preceding their start date.

SNAP, stands for Supplemental Nutritional Assistance Program. Last year, it was awarded to over 44 million Americans nationwide. Among this widely diverse group are workers with secondary jobs, single parents, military families and persons with disabilities. SNAP has aided people of all walks of life at one time or another, including notable celebrities like Bruce Springsteen and Flipboard CEO Mike McCue.

As one of the most commonly-qualified WOTC segments, in 2016, 1.8 million SNAP recipients qualified for WOTC credit. That means employers, nationwide, potentially earned up to $4.3 billion last year from this target group alone. With so many Americans receiving SNAP benefits, you’d be surprised just how many eligible employees you hire. To learn more, check out our tax credit calculator to see what you could earn or give us a call at 563-583-2115.

March 10, 2015

SNAP: A Huge Part of WOTC Tax Credits

The WOTC program includes many target groups. Among these are SNAP (Supplemental Nutrition Assistance Program) recipients, or persons receiving food stamps. It’s highly likely that you may have hired a SNAP recipient or member of a qualified household. According to USDA statistics, in fiscal year 2014, SNAP recipients represented over $10 billion in available tax credits.

With the volume of SNAP recipients in this country, you’ve probably hired untold numbers which met WOTC qualifications. Did you know that roughly one in seven Americans receives this aid? Since the recession, food stamp recipients grew to over 23 million households. The number of children benefiting from the program has nearly doubled to over 15 million since the 2007 recession. All across the country, rural and urban citizens receive food stamps temporarily and long-term.

Hiring a SNAP beneficiary could earn you up to $2400 in tax credit for each new candidate. Qualified candidates must be between 16-39 years old and not have worked for your company before. State workforce departments must receive requests within 28 days of new hires’ start dates.

The great news is these people are easier to identify than you thought possible. By taking advantage of these, and making minor tweaks in your hiring process, you could save thousands in tax dollars. Give us a call at 563-583-2115 to learn how to get started or you can find out how much you have been missing in tax savings by using our free calculator HERE.

SNAP

SNAP Recipients

SNAP: A Huge Part of WOTC Tax Credits