CMS Work Opportunity Tax Credit Newsletter September 2026
In this issue:
- Reminder to Customers: Continue Screening
- Make the Most of Your Admin Portal
- WOTC Wednesday: Can I Get a Report on How Many People Qualified for WOTC?
- Understanding the Work Opportunity Tax Credit’s Target Groups: Designated Community Resident
- #ICYMI
Reminder to Customers: Continue screening
We want to remind you to please continue screening all your new hires. States are working behind the scenes and are advising to keep screening, keep submitting. They are anticipating WOTC to be renewed with a retroactive date, as it has done so historically, so you will miss out on potential tax credits if you do not continue screening.
- 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.
Make the Most of Your Admin Portal
Your Admin Portal is packed with tools to help you stay on top of your WOTC program:
- ✅ Quickly check WOTC results
- Export data to Excel for easy record keeping
- View Realized Tax Certifications with backup documentation
- Get email notifications when forms are completed
- Update company contact information
- Explore “Intro to WOTC” resources to learn more
WOTC Wednesday: Can I Get a Report on How Many People Qualified for 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:
Submit your question for Brian here.
Understanding the Work Opportunity Tax Credit’s Target Groups: Designated Community Resident
New hires who fall under one or more of WOTC’s Target Groups may make you eligible for a WOTC Tax Credit. Target Group #4 is the Designated Community Resident.
104,547 individuals were hired with certification from this group in 2024, 6.6% of the total. The Summer Youth target group also requires the qualified applicants to live in an Empowerment Zone, Enterprise Community or a Renewal Community.
A Designated Community Resident is an individual who, on the date of hiring:
- Is at least 18 years old and under 40,
- Resides within one of the following:
- An Empowerment zone
- An Enterprise community
- A Renewal community
- AND continues to reside at the locations after employment.
The maximum tax credit available for hiring a Designated Community Resident is $2,400.
See more about the Empowerment Zones, Enterprise Zones, Rural Renewal Counties, and drill down to your location using the map.
#ICYMI
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- IRS Encourages Employers to Take Advantage of Work Opportunity Tax Credit
- EEOC Issues Formal Opinion on the Work Opportunity Tax Credit
- WOTC’s Target Groups
- Calculate your WOTC Savings
- Tips to Maximize WOTC Participation and Increase Savings
- Celebrating Our Achievement: Achieving SOC 2 Type 2 Compliance
#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
