CMS Work Opportunity Tax Credit Newsletter February 2024

In this issue:

• Brian Kelly Talks WOTC on the Sage Thought Leadership Podcast
• Why Switch to a Paperless WOTC Screening Process in 2024
• CMS WOTC Screening Services
• CMS Pin Point WOTC Technology (CPPT)
• WOTC Wednesday: Are Employees Eligible for More Than One WOTC Target Group?
• Understanding the Work Opportunity Tax Credit’s Target Groups: Designated Community Resident (DCR)
• Work Opportunity Tax Credit Statistics for California
• #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

 

Why Switch to a Paperless WOTC Screening Process in 2024

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.

 

CMS WOTC Screening Services

Share this video with your colleagues, or anyone who needs to get up-to-speed on the Work Opportunity Tax Credit.

 

CMS Pin Point WOTC Technology (CPPT)

CMS’s Pin Point WOTC Technology (CPPT) performs a multi-step process to detect, identify and confirm new hires living in Federal Empowerment Zones and Rural Renewal Communities. CMS provides another technology tool designed to maximize the federal tax credit program for our clients.

 

WOTC Wednesday: Are Employees Eligible for More Than One WOTC Target Group?

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 Worth it for Employers to Use the Work Opportunity Tax Credit?
• What Is the Work Opportunity Tax Credit?
• Is There a Minimum Wage for the Work Opportunity Tax Credit?

 

Understanding the Work Opportunity Tax Credit’s Target Groups: Designated Community Resident (DCR)

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 (DCR). 152,149 individuals were hired with certification from this group in 2022, 5.9% of the total.

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.

Work Opportunity Tax Credit Statistics for California

In 2022 the state of California issued 212,688 Work Opportunity Tax Credit certifications. California issued 8.28% of all WOTC Tax Credits in 2022, SNAP Recipient was California’s highest tax credit target group with 41.53% of certifications for that category. See historical data on California and the Work Opportunity Tax Credit.