CMS Work Opportunity Tax Credit Newsletter November 2021
In this issue:
- Expiring POAs
- Where to Post Job Openings to Attract Veterans
- WOTC In the News: Reintroduction of the Military Spouse Hiring Act
- WOTC Wednesday: Do employers benefit from hiring veterans?
- Understanding WOTC’s Target Groups: Qualified Veteran
- Work Opportunity Tax Credit Statistics for Massachusetts
- Make the Switch To Paperless WOTC Screening
If your Power of Attorney (POA) document for the Work Opportunity Tax Credit is expiring at the end of 2021, Lisa and Sean will be reaching out to you to renew over the next few weeks. If you have any questions or concerns, please contact us at 800-517-9099.
Veterans’ day is right around the corner! According to Monster.com 90% of veterans say finding a veteran-friendly company is critical in their job search. And when you are using the Work Opportunity Tax Credit, you may also be eligible for a tax credit of up to $9,600.
Earlier this year Representative Antonio Delgado (NY-19), along with Jimmy Panetta (CA-20), Don Beyer (VA-08), Mike Kelly (PA-16), Cathy McMorris Rodgers (WA-05), and Don Bacon (NE-02), have reintroduced the Military Spouse Hiring Act, a bipartisan legislation that incentivizes employers to hire spouses of members of the United States Armed Forces. The bill would expand the Work Opportunity Tax Credit to include the hiring of qualified military spouses, allowing employers to claim a tax credit equal to a portion of the wages paid to those spouses.
CMS’s Brian Kelly answers your questions about the Work Opportunity Tax Credit in our weekly video Q&A series #WOTCWednesday.
Other Recent WOTC Questions Answered:
- How Many Veterans Are Hired Each Year That Qualified for WOTC?
- How Much WOTC Tax Credits Can an Employer Receive for Hiring a Qualified Veteran?
- Do employers benefit from hiring veterans?
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 Long-Term Unemployment Recipient. 106,697 individuals were hired with certification from this group in 2020, 6.58% of the total, making it the second most certified category behind SNAP.
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.
- 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.
- Unemployed for a period totaling at least 6 months (whether or not consecutive) in the 1-year period ending on the hiring date.
- 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.
- 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.
See IRS Notice 2012-13 for more detailed information.
In 2020 the state of Massachusetts issued 21,144 Work Opportunity Tax Credit certifications. Massachusetts issued 1.30% of all WOTC Tax Credits in 2020, and the most overall. SNAP was Massachusetts’ highest tax credit category with 60.72% 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 2020
- EEOC Issues Formal Opinion on the Work Opportunity Tax Credit
- Important Notice: URL Changes for Online WOTC Forms
- Four Things You Didn’t Know About the Work Opportunity Tax Credit
- WOTC’s Target Groups
- Calculate your WOTC Savings
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Related: WOTC Newsletter Archive