While the WOTC provides substantial benefits, there are some limitations and risks to consider:
Administrative Burden: The process of applying for and claiming the WOTC can be complex and time-consuming, requiring careful documentation and adherence to deadlines. Employee Retention: To maximize the credit, employees must work a certain number of hours. High turnover rates can reduce the effectiveness of the credit. Compliance: Employers must ensure they comply with all rules and regulations to avoid potential penalties or disqualification from the credit.