CMS Work Opportunity Tax Credit Newsletter December 2023
‘Tis the season! Happy Chanukah/Hanukkah, Merry Christmas, Happy Festivus, Happy Kwanzaa. We hope you have a safe and happy holiday season!
In this issue:
- POA Forms Expiring at End of Year
- Why Switch to a Paperless WOTC Screening Process in 2024
- WOTC Wednesday: Do employers get a WOTC Tax Credit for Hiring Individuals With Disabilities?
- Understanding the Work Opportunity Tax Credit’s Target Groups: Qualified Veteran
- Work Opportunity Tax Credit Statistics for Alaska
POA Forms Expiring at End of Year
If your Power of Attorney (POA) document for the Work Opportunity Tax Credit is expiring at the end of 2022, Lisa and Sean will be reaching out to you to renew over the next few weeks with a new one. If you have any questions or concerns, please contact us at 800-517-9099.
CMS’s online web link screening system screens your WOTC new hires with ease. There are several benefits to switching from paper to mobile friendly online screening.
WOTC Wednesday: Do employers get a WOTC Tax Credit for Hiring Individuals With Disabilities?
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.
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. 139,058 individuals were hired with certification from this target group in 2022, 5.41% of the total.
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 a 3-month period during the 15-month period ending on the hiring date
- Unemployed for periods of time 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 periods of time totaling at least 6 months (whether or not consecutive) in the 1-year period ending on the hiring date
- Entitled to compensation for a service-connected disability and hired not more than 1 year after being discharged or released from active duty in the U.S. Armed Forces or
- Entitled to compensation for a service-connected disability and unemployed for periods of time totaling at least 6 months (whether or not consecutive) in the 1-year period ending on the hiring date
- See IRS Notice 2012-13 for more detailed information.
North Carolina hired the most Qualified Veterans last year with 11,982 new hires qualifying under that target group. The maximum tax credit available for hiring a Qualified Veteran is $9,600.
In 2022 the state of Alaska issued 7,398 Work Opportunity Tax Credit certifications. Alaska issued 0.29% of WOTC Tax Credits in 2022. SNAP Recipient was Alaska’s highest tax credit target group with 53.93% of certifications for that category. See historical data on Alaska and the Work Opportunity Tax Credit.
- Your WOTC Dashboard
- New Spanish Language Option Available Online
- 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
- The Work Opportunity Tax Credit (WOTC) Statistics 2022
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Related: WOTC Newsletter Archive