CMS Work Opportunity Tax Credit Newsletter February 2021
In this issue:
- Tips to Maximize WOTC Participation and Increase Savings
- Work Opportunity Tax Credit Renewed for FIVE Years!
- WOTC Wednesday: What Work Opportunity Tax Credit Screening Options Does CMS Offer?
- Upcoming Webinar: What can happen when the CEO and HR are aligned?
- Understanding WOTC’s Target Groups: Qualified Veteran
- Work Opportunity Tax Credit Statistics for Tennessee
- Switch To Paperless WOTC Screening in 2021
With 24 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 2021. On average the United States spends $5 Billion each year on this program. How much did you get?
With the Covid-19 Relief Bill that passed and was signed into law on December 27th, the Work Opportunity Tax Credit has been extended through December 31, 2025. This is great news for our WOTC customers because they will not have to deal with any hiatus or wait for a renewal. As always we will keep you apprised of any changes or additional updates.
CMS’s Brian Kelly answers your questions about the Work Opportunity Tax Credit in our new weekly video Q&A series #WOTCWednesday.
Other Recent WOTC Questions Answered:
- WOTC Wednesday: What is the Most Popular Category or Target Group for WOTC?
- WOTC Wednesday: Which State Issues the Most Amount of WOTC Tax Credits?
- WOTC Wednesday: How Far Back Can We Go With the Work Opportunity Tax Credit?
Join the Senior Director of HR at MS International, Inc., Chris Courneen, for a live webinar on HR and CEO alignment. Register today for this discussion on how HR can develop a strong relationship with company leadership and better establish executive buy-in.
Date: Thursday, February 18th, 2021
Time: 2:00pm Eastern/11:00am Pacific
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. 150,000 – 200,000 qualified veterans are hired each year.
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 3 months during the first 15 months of employment. Florida issues the most tax credit certifications for this target group.
- Unemployed for a period totaling at least 4 weeks (whether or not consecutive) but less than 6 months in the 1-year period ending on the hiring date. Georgia issues the most tax credit certifications for this target group.
- Unemployed for a period totaling at least 6 months (whether or not consecutive) in the 1-year period ending on the hiring date. California issues the most tax credit certifications for this target group.
- A disabled veteran entitled to compensation for a service-connected disability hired not more than one year after being discharged or released from active duty in the U.S. Armed Forces. Colorado issues the most tax credit certifications for this target group.
- A disabled veteran entitled to compensation for a service-connected disability who is unemployed for a period totaling at least six months (whether or not consecutive) in the one-year period ending on the hiring date. Florida issues the most tax credit certifications for this target group.
In 2019 the state of Tennessee issued 72,107 Work Opportunity Tax Credit certifications. Nationwide the Volunteer State issued 3.49% of all WOTC Tax Credits in 2019. SNAP was Tennessee’s highest tax credit category with 75% of certifications for that category.
CMS has been providing Work Opportunity Tax Credit screening services for over 20 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.
- Your WOTC Dashboard
- Increased Integration for WOTC Tax Credit to iRecruit, Applicant Tracking Software
- Work Opportunity Tax Credit By The Numbers 2019
- EEOC Issues Formal Opinion on the Work Opportunity Tax Credit
- Important Notice: URL Changes for Online WOTC Forms
- WOTC’s 28-Day Rule Explained
- WOTC’s Target Groups
- Calculate your WOTC Savings
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Related: WOTC Newsletter Archive