CMS Work Opportunity Tax Credit Newsletter January 2023
In this issue:
- Tips to Maximize WOTC Participation and Increase Savings in 2023
- Top 10 Work Opportunity Tax Credit Blog Posts of 2022
- Why Switch to a Paperless WOTC Screening Process
- Expired POAs
- WOTC Wednesday: What Are the WOTC Screening Options CMS Offers?
- Understanding WOTC’s Target Groups: Qualified IV-A Recipient
- Work Opportunity Tax Credit Statistics for Wisconsin
- Make the Switch to Paperless WOTC Screening
With 25+ years of experience in Work Opportunity Tax Credit screening and processing, we would like to offer you some tips to make sure you get the maximum tax credit available in 2023. On average the United States spends $5 Billion each year on this program. How much did you get?
Happy New Year! At this time of year we like to take a look back at some of our most popular blog posts of the year. So here is this year’s list of the top CMS WOTC blog posts of 2022!
CMS’s online web link screening system screens your WOTC new hires with ease. The benefits of using the online screening system include…
POA Forms Expired at End of 2022
If your Power of Attorney (POA) document for the Work Opportunity Tax Credit expired 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 Brian Kelly answers your questions about the Work Opportunity Tax Credit in our weekly video Q&A series #WOTCWednesday.
Other Recent #WOTCWednesday Questions Answered:
- Is there a minimum amount of hours an employee needs to work to be eligible for the Work Opportunity Tax Credit?
- How Are WOTC Tax Credits Calculated?
- Can I get a report on how many people were qualified for WOTC?
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 #1 is the Qualified IV-A Recipient, better known as TANF (Temporary Assistance to Needy Families). 56,526 individuals were hired with certification from this group in 2021, 2.72% of the total, making it the seventh overall certified category.
Qualified IV-A Recipient
An individual who is a member of a family receiving assistance under a state plan approved under part A of title IV of the Social Security Act relating to Temporary Assistance for Needy Families (TANF). The assistance must be received for any 9-month period during the 18-month period ending on the hiring date. The maximum tax credit available for hiring a Qualified IV-A Recipient is $2,400.
In 2021 the state of Wisconsin issued 39,503 Work Opportunity Tax Credit certifications. The Badger state issued 1.90% of all WOTC Tax Credits in 2021, SNAP Recipient was Wisconsin’s highest tax credit category with 51.91% of certifications for that target group.
CMS has been providing Work Opportunity Tax Credit screening services for 25 years. We have helped save employers millions of dollars that can be reinvested back into their businesses. We highly encourage customers to take advantage of the online WOTC screening form that we developed or the call center, both of which provide several benefits to you.
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Related: WOTC Newsletter Archive