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What does WOTC provide for employers?
Employers can:
Receive tax credits for hiring individuals from targeted groups yet still make their own hiring decisions.
Reduce their federal tax liability by as much as $2,400 per new hire during their first year of employment.
Help those most in need to become economically self-sufficient.
Hire as many qualified employees as their payroll will allow.
Reduce their recruitment and training costs.
Claim the tax credit with minimal paperwork.
Provide valuable on-the-job experiences to qualified job seekers.
How does an employer apply for the tax credit?
Employers must complete two forms: 1) Internal Revenue Service (IRS) 8850--Prescreening Notice and Certification Request, and 2) Employment and Training Administration (ETA) 9061--Individual Characteristics Form. Employers must provide required documentation and original signatures. Employers must meet the filing deadline--applications must be postmarked within 28 days of start work date.
How can an employer get the required forms?
Both the IRS 8850 and the Department of Labor ETA 9061 may be downoaded from the WOTC homepage: http://www.doleta.gov/business/incentives/opptax/
OR
Employers may call the WOTC state office at (304) 558-5050 to request forms.
What job seekers are in the WOTC target groups?
There are nine target groups eligible for WOTC, including:
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A.
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Recipients of Temporary Assistance for Needy Families (TANF) - An individual who received or is a member of a family that has received TANF assistance for any nine months during the 18-month period ending on the hiring date.
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B.
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Veterans - A veteran who is a member of a family that received food stamps for at least a three-month period during the 15-month period ending on the start work date OR a disabled veteran who is entitled to compensation for a service-connected disability AND has a hiring date which is not more than one year after having been discharged or released from active duty in the US Armed Forces OR has been unemployed for six months.
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C.
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Ex-Felons - An individual who has been convicted of a felony and has a hiring date within one year after conviction or release from prison.
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D.
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Designated Community Residents - Any person who is at least 18, but not yet 40 and resides in the Huntington, WV Empowerment Zone, the Upper Kanawha Valley Enterprise Community, or the Rural Renewal Counties of Calhoun, Gilmer, Logan, McDowell, Mercer, Mingo, Summers, Tucker, Webster, Wetzel, and Wyoming in West Virginia. To determine whether an address is in an Empowerment Zone or Enterprise Community, visit http://egis.hud.gov/egis/cpd/rcezec/ezec_open.htm and enter the address.
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E.
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Vocational Rehabilitation Referrals-Any person having a physical or mental disability which, for that individual, constitutes or results in a substantial handicap to employment, and who was referred to the employer upon completing or while receiving rehabilitative services from a State-certified agency, an Employer Network, or the U.S. Department of Veterans Affairs.
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F.
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Summer Youth Employees - Any person hired between May 1 and September 15, who is 16-17 years old, and resides within an Empowerment Zone, Enterprise Community, or Rural Renewal County.
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G.
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Food Stamps Recipients - Any person 18 years of age but not yet 40 who is a member of a family that received food stamps for the last six months or received food stamps for three months out of the last five months but is no longer eligible to receive them and has no dependents.
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H.
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Supplemental Security Income (SSI) Recipients - An individual who received SSI benefits for any month ending within 60 days prior to the hire date.
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I.
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Long-Term/Family Assistance Recipients- Individuals must be Long-Term Family Assistance recipients or a member of a family who has received LTFAR. Recipients include those:
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Who received Temporary Assistance to Needy Families (TANF), for at least 18 consecutive months ending on the date of hire
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Whose TANF eligibility expired under Federal or State law after August 5,1997, and are hired within two years after this eligibility expired
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Who received TANF for a total of at least 18 months after August 5, 1997, and are hired within two years after the 18-month period is reached.
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Where can employers find additional information?
For more details regarding the laws and regulations governing the Work Opportunity Tax Credit or to review the WOTC Employer Details, visit the U.S. Department of Labor website: www.doleta.gov/business/incentives/opptax/
To obtain a WOTC handbook and to determine the appropriate documentation required, visit the above-listed website.
You can also e-mail the WOTC state office or call (304) 558-5050.
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