WOTC’s Newest Category: Long-Term Unemployed

The recent renewal and expansion of the Work Opportunity Tax Credit added a new target group: the Long-Term Unemployment Recipient.

Long-Term Unemployment Recipient. An individual who has exhausted their regular unemployment compensation (the first 26 weeks of unemployment benefits, or slightly over six months) since the economic crisis began in 2007.

A Qualified Long-Term Unemployment Recipient Is:

An individual hired after December 31, 2015 who is in a period of unemployment that:

  • Is not less than 27 consecutive weeks, and
  • Includes a period (which may be less than 27 consecutive weeks) in which the individual received unemployment compensation under state or federal law.

The qualified recipient will answer YES to the following questions:

Question 7 on the 8850

  • Check here if you are in a period of unemployment that is at least 27 consecutive weeks and for all or part of that period you received unemployment compensation.

Question 23 on the 9061:

  • Are you an individual who is or was in a period of unemployment that is at least 27 consecutive weeks the day before you began to work for the employer, or if earlier, the day you completed IRS Form 8850, the Prescreening form?
  • If YES, did you receive unemployment compensation/benefits under State or Federal law during a period of unemployment?

Tax Credit Value

The value of WOTC Credits can vary per category, and can go as high as $9,600 for hiring qualified veterans. The average tax credit we see is typically around $2,400. There’s no limit to how many credits you can claim or qualify for in a single year (calculate your potential credit).

We Can Find You Savings!

Contact CMS today to find out how we can help you make the most of the Work Opportunity Tax Credit’s available. Don’t miss out on savings! We’ve been helping companies maximize their tax credits since 1997. How much can we save you? Call 800-517-9099 or visit our website at www.cmswotc.com to learn more.