Work Opportunity Tax Credit (WOTC)
|
The Work Opportunity Tax Credit (WOTC) is a federal tax credit that offers an incentive for private sector businesses to hire individuals from 8 targeted groups that have consistently faced significant barriers to employment. |
|
By participating in the WOTC program, employers: |
- Can reduce their federal tax liability by as much as $9,600 on new hires
- Make the hiring decision
- Complete minimal paperwork to claim the tax credit
- Can hire as many new qualifying individuals as they choose
|
- Qualified I-VA recipient [Title IV, part A, Social Security Act relating to Temporary Assistance for Needy Families (TANF)]
- Qualified veteran
- Qualified ex-felon
- Designated community resident (empowerment zone, renewal community or rural renewal community)
- Vocational rehabilitation referral
- Qualified food stamps recipient
- Qualified Supplemental Security Income (SSI) recipient
- Qualified long-term Temporary Assistance for Needy Families (TANF) recipient
|
There are two forms employers must complete for each new hire.
- IRS Form 8850 (PDF) (Pre-screening Notice and Certification Request for the Work Opportunity Credit - Rev. January 2012) - must be submitted with original signatures and dates
- ETA Form 9061 (PDF) (Individual Characteristics Form)
|
Timely filing is imperative! IRS Form 8850 along with ETA Form 9061 must be mailed no later than the 28th calendar day following the new employee's employment start date. (When the 28th calendar day lands on a Saturday, Sunday or holiday, the next succeeding business day will be treated as the last day of the period.) |
Workforce Department of Labor
WOTC Coordinator
55 Sample Road NW
Simple City, State 11111 |
|