Understanding WOTC Target Groups: Qualified IV-A Recipient

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 can save an employer significant amounts of money.

WOTC Screening is used to determine if a new hire is a member of one of the Work Opportunity Tax Credit’s ten target groups that would make the employer eligible to receive a tax credit for hiring the individual.

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.

 

Contact CMS Today to Start Saving!

In over 25 years of providing valuable WOTC Screening and Administration services we’ve saved millions for our customers.

Contact CMS today to start taking advantage. Call 800-517-9099, or click here to use our contact form to ask any questions.

 

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