At CMS we have been providing Work Opportunity Tax Credit (WOTC) administration services since 1997. With over 20 years of experience, we would like to offer you some tips to make sure you get the maximum tax credit available in 2019. The WOTC program is active throughout 2019.
- Include the WOTC forms (8850 and 9061) as part of your onboarding process to make it easy for new hires. Give the new hires the “paperwork” along with their W-4 and I-9 and any other documents you use during onboarding.
- Give WOTC Forms to ALL new employees to avoid any potential discrimination.
- Using Paper Forms? Use this checklist to make sure forms are completed correctly:
- Did your employee sign and date the WOTC forms correctly?
- Is the required information complete?
- Did you put in their start date?
- Did you put in their job title and hourly wage?
- Has the employee worked for your company before? (Important, WOTC is only available for new hires).
- Submit your WOTC paperwork on time! You can do this online or in the mail within 28 days of the employee’s start date to the State Workforce Agency. CMS helps keep you in compliance with this rule with our online portal and reports.
- Hiring Veterans? Request a copy of their DD214 as part of the onboarding process. This will save time if the State Workforce Agency needs to request a copy from you.
- Track progress using CMS’s online portal, where you can see, in real time, that your new hires are doing their forms so you don’t miss anyone.
- Use a WOTC Administration service. We screen all your new hires to find you tax credits. On average 15% of your new hires may qualify.
- Track Hours and Wages. Track the employee’s hours and wages in your payroll program, or on a spreadsheet. The actual value of your credits is based on this information. Employees must work a minimum of 120 hours to be eligible.
- Cut down on paperwork and save time! CMS offers several easy ways to submit your WOTC forms:
- Secure Online application (with translation)
- 1-800 Call Center (with translation)
- Secure Fax
How much can you save?
On average 10-15% of your new hires may be qualified for up to $2,400 worth of tax savings under the WOTC program guidelines. This varies by region and category.
WOTC is easy to set up and easy to use.
We recommend including WOTC screening as part of your onboarding process. WOTC screening can be done via phone, secure web portal, or mail/fax. We do all the rest. We screen new hires for eligibility and submit qualified new hires to the appropriate state agency. When we receive credit, we track the hours worked and wages received to ensure you get the maximum credit available.
Start Saving Today!
Call 800-517-9099 to find out how to get started, or contact us here.