CMS Work Opportunity Tax Credit Newsletter August 2026

CMS Work Opportunity Tax Credit Newsletter August 2026

In this issue:

• Reminder to Customers: Continue Screening
• How to Check if You are in an Empowerment Zone, Enterprise Zone, or Rural Renewal County
• WOTC Wednesday: Can employee be referred by more than one agency for Work Opportunity Tax Credit?
• Understanding the Work Opportunity Tax Credit’s Target Groups: Long-Term Unemployment Recipient
• #ICYMI

 

Reminder to Customers: Continue screening

We want to remind you to please continue screening all your new hires. States are working behind the scenes and are advising to keep screening, keep submitting. They are anticipating WOTC to be renewed with a retroactive date, as it has done so historically, so you will miss out on potential tax credits if you do not continue screening.

• DON’T MISS OUT ON TAX CREDITS! We would like to remind customers to continue to screen new hires within the 28 day time frame.
• Screen Every New Hire: Don’t miss out on potential tax credits—screen everyone!
• Check Your WOTC URL/Links: Make sure your WOTC onboarding links are active. Please let us know if you need updates.
• 28-Day Deadline: WOTC forms must be submitted within 28 days of the new hire’s start date to remain eligible. (Yes, it bears repeating)
• Review your company contacts in the ORGANIZATION INFORMATION tab in the Admin Portal to confirm everything is current.

WOTC Wednesday: Can employee be referred by more than one agency for Work Opportunity Tax Credit?

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

Other Recent #WOTCWednesday Questions Answered:

• Are salaried/exempt employees eligible for the Work Opportunity Tax Credit?
• How are the Work Opportunity Tax Credits Calculated?
• When Is The Best Time To Give the Applicant the Work Opportunity Tax Credit Survey?

Submit your question for Brian here.

 

Understanding the Work Opportunity Tax Credit’s Target Groups: Long-Term Unemployment 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 #10 is the Long-Term Unemployment Recipient. 98,684 individuals were hired with certification from this group in 2024, 6.3% of the total.

A “qualified long-term unemployment recipient” is an individual who has been unemployed for not less than 27 consecutive weeks at the time of hiring and who received unemployment compensation during some or all of the unemployment period.

The maximum tax credit available for hiring a Qualified Long-Term Unemployment Recipient is $2,400.

 

#ICYMI