CMS Work Opportunity Tax Credit Newsletter June 2025

CMS Work Opportunity Tax Credit Newsletter June 2025

In this issue:

• Brian Kelly Talks WOTC on the Sage Thought Leadership Podcast
• WOTC Wednesday: What is the Work Opportunity Tax Credit “WOTC”?
• Understanding the Work Opportunity Tax Credit’s Target Groups: Long-Term Family Assistance Recipient
• Cost Management Services Achieves SOC 2 Type 2 Compliance
• #ICYMI

 

Brian Kelly Talks WOTC on the Sage Thought Leadership Podcast

️Brian Kelly is featured on this week’s Sage Thought Leadership Podcast with Ed Kless talking about taking advantage of the Work Opportunity Tax Credit.

 

WOTC Wednesday: What is the Work Opportunity Tax Credit “WOTC”?

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

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: Long-Term Family Assistance 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 Family Assistance Recipient. 70,810 individuals were hired with certification from this group in 2024, 4.5% of the total.

Long-Term Family Assistance Recipient

A “long-term family assistance recipient” is an individual who, at the time of hiring, is a member of a family that meet one of the following conditions:

• Received assistance under an IV-A program for a minimum of the prior 18 consecutive months
• Received assistance under an IV-A program for a minimum 18-month period beginning after 8/5/1997 and it has not been more than 2 years since the end of the earliest of such 18-month period OR
• Ceased to be eligible for assistance under an IV-A program because a federal or state law limited the maximum time those payments could be made, and it has been not more than 2 years since the cessation of such assistance

The maximum tax credit available for hiring a Long-Term Family Assistance Recipient is $9,000 which is taken over two years.

 

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