CMS Work Opportunity Tax Credit Newsletter July 2026
In this issue:
- Reminder to Customers: Send WOTC Surveys Within 28 Days of Employee’s Start Date
- Celebrating Our Achievement: Achieving SOC 2 Type 2 Compliance
- WOTC Wednesday: How are Work Opportunity Tax Credits (WOTC) Calculated?
- Understanding the Work Opportunity Tax Credit’s Target Groups: Ex-Felon
- #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 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.
Celebrating Our Achievement: Achieving SOC 2 Type 2 Compliance
We’re excited to announce that Cost Management Services has successfully achieved compliance with the SOC 2 Type 2, marking a significant milestone in our commitment to data security and regulatory compliance.
CMS has maintained a commitment to security and data protection since its inception, and we are pleased to provide proof that we meet the SOC 2 Type 2 compliance standards, and have retained this certificate for a second year. In today’s world of ever increasing cyber threats, it is imperative that we uphold these standards.
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: 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.
#ICYMI
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#WeKnowWOTC
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Related: WOTC Newsletter Archive
