Introduction to the Work Opportunity Tax Credit

The Work Opportunity Tax Credit known as #WOTC is a federal tax credit available to employers who hire individuals from disadvantaged groups of workers. Including WOTC Screening with iRecruit can save an employer significant amounts of money.

WOTC Tax Credit Calculator – Estimate Your Potential Tax Credits

Get To Know the WOTC Target Groups – Which Employees Qualify?

There are ten Work Opportunity Tax Credit Target Groups. Employers can hire eligible employees from the following target groups for WOTC.

  1. Qualified IV-A Recipient
  2. Qualified Veteran
  3. Ex-Felon
  4. Designated Community Resident (DCR)
  5. Vocational Rehabilitation Referral
  6. Summer Youth Employee
  7. Supplemental Nutrition Assistance Program (SNAP) Recipient
  8. Supplemental Security Income (SSI) Recipient
  9. Long-Term Family Assistance Recipient
  10. Qualified Long-Term Unemployment Recipient

How Does the Work Opportunity Tax Credit Work?

WOTC starts with a screening process to determine if any new hires are a member of one of the Ten WOTC Target Groups. Screening can be done on paper using two forms (IRS Form 8850 Pre-Screening Notice and Certification Request for the Work Opportunity Credit, and the Department Of Labor ETA Form 9061 Individual Characteristics Form (ICF) Work Opportunity Tax Credit ). Phone screening using a call center, or done online, using a secure online form. (What is WOTC Screening?)

Completed screening forms are reviewed for eligibility, and submitted to a State Workforce Agency who will issue a final determination on whether or not the new hire is eligible. If they are eligible, they will issue a certification, that will need to be kept on file for at least five years.

Have a question for us, or want to ask us how the WOTC can help your business or clients?

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