CMS Work Opportunity Tax Credit Newsletter April 2024

In this issue:

• Expiring POA Forms
• Work Opportunity Tax Credit Statistics 2023
• Why Switch to a Paperless WOTC Screening Process in 2024
• WOTC Wednesday: Are employees eligible if they check more than one box on the WOTC forms?
• Understanding the Work Opportunity Tax Credit’s Target Groups: Qualified Supplemental Nutrition Assistance Program (SNAP) Benefits Recipient
• Work Opportunity Tax Credit Statistics for Ohio 2023
• #ICYMI

 

Expiring POA Forms

If your Power of Attorney (POA) document for the Work Opportunity Tax Credit is expiring soon please keep screening. Don’t miss out on tax credits! 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.

 

Work Opportunity Tax Credit Statistics 2023

The latest statistics for the Work Opportunity Tax Credit from 2023 have recently been released by the U.S. Department of Labor, and the data shows that a total of 1,988,528 total Work Opportunity Tax Credits were issued in the United States in 2023. This represents an almost 23% decrease over the previous year.

 

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, including a potential increase in tax credits!

 

WOTC Wednesday: Are employees eligible if they check more than one box on the WOTC forms?

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 There a Minimum Wage for the Work Opportunity Tax Credit?
• Can my family members qualify for the Work Opportunity Tax Credit?
• How are the Work Opportunity Tax Credits Calculated?

 

Understanding the Work Opportunity Tax Credit’s Target Groups: Qualified Supplemental Nutrition Assistance Program (SNAP) Benefits Recipient

New hires who fall under one or more of WOTC’s Target Groups may make you eligible for a WOTC Tax Credit. Target Group #8 is the Qualified Supplemental Nutrition Assistance Program (SNAP) Benefits Recipient. 1,289,001 individuals were hired with certification from this group in 2023, 64.82% of the total.

A “qualified SNAP benefits recipient” is an individual who on the hiring date is:

• At least 18 years old and under 40 and
• A member of a family that received SNAP benefits for:
  • the previous 6 months or
  • at least 3 of the previous 5 months

The maximum tax credit available for hiring a Qualified Supplemental Nutrition Assistance Program (SNAP) Benefits Recipient is $2,400.

Work Opportunity Tax Credit Statistics for Ohio 2023

In 2023 the state of Ohio issued 122,392 Work Opportunity Tax Credit certifications. Ohio issued 6.17% of all WOTC Tax Credits in 2023, SNAP Recipient was Ohio’s highest tax credit target group with 51.51% of certifications for that category. See historical data on Ohio and the Work Opportunity Tax Credit.