WORK OPPORTUNITY TAX CREDIT

What is the Work Opportunity Tax Credit?

The Work Opportunity Tax Credit (WOTC) is a federal tax credit available to employers who hire individuals from eligible target groups with significant barriers to employment.

Employers can earn between $2,400 to $9,600 in federal tax credit per new hire.
Employers make the hiring decision.
There is no limit to the number of new hires who can qualify an employer for this tax savings.

Who Can Participate in the WOTC Program?

Employers who file their taxes with the Internal Revenue Service (IRS) may submit applications to claim tax credits for new hires that meet the criteria for one of the specified target groups.

Current or rehired employees; relatives of employers and employees paid wages for federally subsidized on-the-job training are ineligible to qualify for the WOTC tax credit.

Work Opportunity Tax Credit Targeted Groups

Long-Term (TANF) recipient– A member of a family that received Temporary Assistance to Needy Families (TANF) for at least 18 consecutive months ending on their hiring date.
Short-Term (TANF) recipient– A member of a family that received TANF payments for any 9 months during the 18-month period ending on their hiring date.
Veteran-A member of a family that:

Received benefits from the Supplemental Nutrition Assistance Program (SNAP) for at least a 3-month period during the 15 month period ending on their hiring date.
Was unemployed for a period or periods totalling at least 4 weeks (whether or not consecutive) but less than 6 months in the 1-year period ending on their hiring date.
Was unemployed for a period totalling at least 6 months (whether or not consecutive) in the 1-year period ending on their hiring date.
A disabled veteran entitled to compensation for a service-connected disability hired not more than one year after being discharged or released from active duty in the U.S. Armed Forces.
A disabled veteran entitled to compensation for a service-connected disability who is unemployed for a period totalling at least six months (whether or not consecutive) in the one-year period ending on the hiring date.

Supplemental Nutrition Assistance (SNAP) recipient– A individual who on their date of hire is:

At least 18 to 39 years old, AND
Is a member of a family that received SNAP benefits for:
The previous 6 months ending on their hiring date OR
At least 3 of the previous 5 months ending on their hiring date.

Vocational Rehabilitation referral– A person with a physical or mental disability referred to the employer while receiving or upon completion of rehabilitative services from a state certified agency.
Ex– Felon– An individual convicted of a felony and is hired within one year after the date of the conviction or release from prison.
Long-Term Unemployment Recipient– An individual who has been unemployed for not less than 27 consecutive weeks at the time of their hire and received unemployment compensation during some or all of the unemployment period.

How to Apply

The Workforce Development Team are excited to announce that registration for the Work Opportunity Tax Credit (WOTC) is now available online!

Third Party Agents, Employers and Staff now have an online tool that makes the tax credit process easy and streamlined!

Are you an agent? You now have at your fingerprint access to tools to represent the employers and submit all requests. Employers now have the the ability to show interest in the hiring of persons of certain targeted groups to apply for WOTC.

Application: complete the WOTC application online and work closely with the workforce development team to ensure that applications comply with deadlines and required documentation.
Third Party Administrators (TPAs): Upload numerous 8850 and 9061 applications to include a list of all employer clientele to make the process quicker. TPAs are also able to get notifications on the status of applications.
Customized Notifications and Alerts: TPAs as well as employers are able to get custom alerts about issues such as missing data or documents, credit awards, or wrong address.