CMS Work Opportunity Tax Credit Newsletter August 2025

CMS Work Opportunity Tax Credit Newsletter August 2025

In this issue:

• Reminder to Customers: Send WOTC Surveys Within 28 Days of Employee’s Start Date
• WOTC Wednesday:  How are Work Opportunity Tax Credits (WOTC) Calculated?
• Understanding the Work Opportunity Tax Credit’s Target Groups: Qualified IV-A Recipient
• Cost Management Services Achieves SOC 2 Type 2 Compliance
• #ICYMI

 

Reminder to Customers: Send WOTC Surveys Within 28 Days of Employee’s Start Date

DON’T MISS OUT ON TAX CREDITS! We would like to remind customers who are doing a lot of hiring over the next few months to make sure you send us your WOTC paperwork within 3 weeks of the employee’s start date.

Because of the WOTC 28 Day Rule CMS has just 28 days from the employee’s start date to submit your forms to the respective state agency for processing. The 3 week suggestion is to make sure our team of administrators has time to screen and process your WOTC applications.

CMS’s secure portal is the quickest and easiest way for new hires to complete the WOTC “paperwork”. If you have questions or need assistance, please contact us today.

 

WOTC Wednesday: How are Work Opportunity Tax Credits (WOTC) Calculated?

CMS’s Brian Kelly answers your questions about the Work Opportunity Tax Credit in our weekly video Q&A series #WOTCWednesday.

Other Recent #WOTCWednesday Questions Answered:

• Is it Better to Use Paper or Go Online with the WOTC Forms?
• What is the minimum wage for WOTC Tax Credit?
• Are my rehires eligible for the Work Opportunity Tax Credit?

Submit your question for Brian here.

 

Understanding the Work Opportunity Tax Credit’s Target Groups: IV-A Recipient

New hires who fall under one or more of WOTC’s Target Groups may make you eligible for a WOTC Tax Credit. Target Group #1 is the Qualified IV-A Recipient. 38,820 individuals were hired with certification from this group in 2024, 2.5% of the total.

A “qualified IV-A recipient” is an individual who is a member of a family receiving assistance under a state program funded under part A of title IV of the Social Security Act relating to Temporary Assistance for Needy Families (TANF). The assistance must be received for any 9 months during the 18-month period ending on the hiring date.

The maximum tax credit available for hiring a Qualified IV-A Recipient is $2,400.

 

Cost Management Services Achieves SOC 2 Type 2 Compliance

Cost Management Services (“CMS”) the developer of iRecruit, Applicant Tracking and Onboarding Software, and Work Opportunity Tax Credit (WOTC)  Screening Software Provider is excited to share the successful completion of our SOC 2 Type II compliance assessment, led by Insight Assurance. This achievement highlights our ongoing focus on protecting customer data, improving internal controls, and staying aligned with evolving industry expectations.

 

#ICYMI