CMS Work Opportunity Tax Credit Newsletter July 2025

CMS Work Opportunity Tax Credit Newsletter July 2025

In this issue:

• Reminder to Customers: Send WOTC Surveys Within 28 Days of Employee’s Start Date
• What Can My WOTC Dashboard Show Me?
• WOTC Wednesday: Are rehires eligible for the Work Opportunity Tax Credit?
• Understanding the Work Opportunity Tax Credit’s Target Groups: Long-Term Unemployment 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.

 

What Can My WOTC Dashboard Show Me?

If you’re not using the portal, your missing out. Contact Sean Kelly to make sure you have your log in information. Your Work Opportunity Tax Credit (WOTC) Dashboard gives you a real-time overview of the activity in your account. The Dashboard contains the following.

 

WOTC Wednesday: Are rehires eligible for the Work Opportunity Tax Credit?

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 limit to how many WOTC credits I can claim each year?
• What is the Work Opportunity Tax Credit amount for hiring an Ex Felon?
• Is it Worth it for Employers to Use the Work Opportunity Tax Credit?

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.

 

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