CMS Work Opportunity Tax Credit Newsletter September 2025

CMS Work Opportunity Tax Credit Newsletter September 2025

In this issue:

• Reminder to Customers: Send WOTC Surveys Within 28 Days of Employee’s Start Date
• How to Check if You are in an Empowerment Zone, Enterprise Zone, or Rural Renewal County
• WOTC Wednesday: Can I Get a Report on How Many People Qualified for WOTC?
• Understanding the Work Opportunity Tax Credit’s Target Groups: Qualified Veteran
• #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.

CMS’s secure portal is the quickest and easiest way for new hires to complete the WOTC “paperwork”. If you have questions or need assistance, please contact us today.

 

How to Check if You are in an Empowerment Zone, Enterprise Zone, or Rural Renewal County

If your new employees live in an Empowerment Zone, Enterprise Zone, or Rural Renewal Community (RRC) you may be eligible for a WOTC Tax Credit. Click on the map to zoom in and find out if your location qualifies.

 

 

Understanding the Work Opportunity Tax Credit’s Target Groups: Qualified Veteran

New hires who fall under one or more of WOTC’s Target Groups may make you eligible for a WOTC Tax Credit. Target Group #2 is the Qualified Veteran. 102,390 individuals were hired with certification from this group in 2024, 6.5% of the total, making it the third overall certified WOTC category.

A “qualified veteran” is a veteran who is any of the following:

• • A member of a family receiving assistance under the Supplemental Nutrition Assistance Program (SNAP) (food stamps) for at least 3 months during the first 15 months of employment.
  • Unemployed for a period totaling at least 4 weeks (whether or not consecutive) but less than 6 months in the 1-year period ending on the hiring date.
  • Unemployed for a period totaling at least 6 months (whether or not consecutive) in the 1-year period ending on the hiring date.
  • A disabled veteran entitled to compensation for a service-connected disability hired not more than one year after being discharged or released from active duty in the U.S. Armed Forces.
  • A disabled veteran entitled to compensation for a service-connected disability who is unemployed for a period totaling at least six months (whether or not consecutive) in the one-year period ending on the hiring date.

The maximum tax credit available for hiring a Qualified Veteran is $9,600. The actual amount will vary depending on the qualifying target group.

#ICYMI