CMS Work Opportunity Tax Credit Newsletter February 2026
In this issue:
- Reminder to Customers
- What are the Benefits of Switching to Paperless WOTC Screening?
- Understanding the Work Opportunity Tax Credit’s Target Groups: Qualified Ex-Felon
- CMS Pin Point WOTC Technology (CPPT)
- #ICYMI
Reminder to Customers
DON’T MISS OUT ON TAX CREDITS! We would like to remind customers to make sure you 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 Links: Make sure your WOTC onboarding links are active. 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.
What are the Benefits of Switching to Paperless WOTC Screening?
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 There a Minimum Wage for WOTC?
- How many WOTC Target Groups are there?
- Is There a WOTC Tax Credit for Hiring Former Employees?
Submit your question for Brian here.
Understanding the Work Opportunity Tax Credit’s Target Groups: Qualified Ex-Felon
New hires who fall under one or more of WOTC’s Target Groups may make you eligible for a WOTC Tax Credit. Target Group #3 is the Qualified Ex-Felon. 49,661 individuals were hired with certification from this group in 2024, 3.1% of the total.
A “qualified ex-felon” is a person hired within a year of:
- Being convicted of a felony or
- Being released from prison for the felony
The maximum tax credit available for hiring a Qualified Ex-Felon is $2,400.
CMS Pin Point WOTC Technology (CPPT)
CMS’s Pin Point WOTC Technology (CPPT) performs a multi-step process to detect, identify and confirm new hires living in Federal Empowerment Zones and Rural Renewal Communities. CMS provides another technology tool designed to maximize the federal tax credit program for our clients.
#ICYMI
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.
#Follow CMS on Social Media
#WeKnowWOTC
The latest news on the Work Opportunity Tax Credit (WOTC) from Cost Management Services. Sign Up for the Work Opportunity Tax Credit (WOTC) Newsletter
Related: WOTC Newsletter Archive
