As of January 2025, the unemployment rate was reported to be 4%. Employers facing hiring challenges may benefit from a valuable one-time federal tax credit available through 2025. The Work Opportunity Tax Credit (WOTC) incentivizes businesses to hire individuals from specific groups often facing employment barriers. These include veterans, recipients of specific aid programs, ex-felons, long-term unemployed individuals, and eligible summer youth employees. To claim the credit, employers must certify the eligibility of new hires by filing the required form with their state workforce agency within 28 days of the employee’s start date.

Note: unless extended by legislation, the WOTC won’t be around much longer, so take advantage of it while you can. Click here for more about the WOTC.