WOTC Categories

WOTC Renewed Through 2019! Nine eligible categories:

Veteran Target Groups

NEW The VOW to Hire Heroes Act of 2011 Expanded and Extended the Qualified Veteran Groups. To be eligible under the current WOTC program, a veteran must have begun to work for an employer on or after November 22, 2011 and before December 31, 2019.

1. Qualified Veteran. A veteran who is:
a member of a family that received SNAP benefits (food stamps) for at least a 3-month period during the 15-month period ending on the hiring date;
or entitled to compensation for a service-connected disability and who is hired within one year of discharge or release from active duty in the U.S. Armed Forces, or
entitled to compensation for a service-connected disability and unemployed for a period or periods totaling at least 6 months of the year ending on the hiring date.
New Unemployed Categories:
unemployed for at least 4 weeks, but less than 6 months,
unemployed for at least 6 months

Other Target Groups

The legislative authority for the WOTC program’s non-veteran groups is renewed through December 31, 2019. For an employee to be certified as an eligible group member by a State Workforce Agency, the new hire must belong to one of the following target groups:

2. Long-term TANF Recipient. A member of a family that:
Received Temporary Assistance to Needy Families (TANF) payments for at least 18 consecutive months ending on the hiring date, or
Received TANF payments for any 18 months (whether or not consecutive) beginning after August 5, 1997, and has a hiring date that is not more than two years after the end of the earliest 18-month period after August 5, 1997, or
Stopped being eligible for TANF payments during the past 2 years because a federal or state law limited the maximum time those payments could be made.

3. Short-term TANF Recipient. A member of a family that received TANF benefits for any 9-month period during the 18-month period ending on the hiring date.

4. Supplemental Nutrition Assistance Program (SNAP) Recipient. An 18-39 year old member of a family that received SNAP benefits for the 6 months ending on the hiring date, or received SNAP benefits for at least 3 of the 5 months ending on the hiring date.

5. Designated Community Resident. An 18-39 year old who lives within one of the federally designated Rural Renewal Counties. Note: The Summer Youth group is no longer a target group.

6. Vocational Rehabilitation Referral. An individual with a disability who completed or is completing rehabilitative services from a State certified agency, an Employment Network under the Ticket to Work program, or the U.S. Department of Veterans Affairs .

7. Ex-Felon. An individual who has been convicted of a felony and has a hiring date which is not more than one year after the last date on which he was so convicted or released from prison.

8. SSI Recipient. A recipient of Supplemental Security Income (SSI) benefits for any month ending during the past 60-day period ending on the hire date.

9. Long-Term Unemployment Recipient. An individual who has exhausted their regular unemployment compensation (the first 26 weeks of unemployment benefits, or slightly over six months) since the economic crisis began in 2007.

Minimum Employment or Retention Period, In addition to belonging to one of the 8 groups outlined above, all new adult employees must work a minimum of 120 hours for the employer to qualify to claim the WOTC.

Ineligible Populations

The following individuals or groups of individuals do not qualify for the WOTC, even if they meet the other eligibility criteria:

  • Employer’s relatives and dependents;
  • Majority owners of the employer; and
  • Former employees.

Call Now To Sign Up and Save

CMS has helped companies save money on new hires by maximizing tax credits available through the Work Opportunity Tax Credit since 1997. There’s never been a better time to start saving. Call today to speak to a tax credit expert 1-800-517-9099.

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