Work Opportunity Tax Credit (WOTC). What is the Work Opportunity Tax Credit?. WOTC is an OPPORTUNITY to provide gainful employment to a person with barriers while rewarding the employer who hired them. . How do employers qualify for the tax credit?.
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Work Opportunity Tax Credit(WOTC)
WOTC is an OPPORTUNITY to provide gainful employment to a person with barriers while rewarding the employer who hired them.
By hiring an employee who belongs to one of the following target groups:
TANF - a member of a family that is receiving or has received TANF benefits for any 9-month period during the 18-month period ending on the hiring date;
Long-Term Family Assistance - A member of a family that is receiving or has received assistance for at least 18 consecutive months ending on the hiring date;
SNAP - A person 18 – 39 years old, who is a member of a family that is receiving or has received
Designated Community Resident - A person 18 – 39 years old, who is a resident of one of the federally designated Empowerment Zones (EZs), Enterprise Communities (ECs), or Renewal Communities (RCs);
Unemployed Veteran –
Veterans who received Unemployment Insurance benefits for at least 4 weeks. Wages capped at $6,000.00 This allows as maximum credit amount of $2,400.00..
Veterans who received Unemployment Insurance benefits for at least 6 months. Wages capped at $14,000.00 . This allows a maximum credit $5,600.00.
Vocational Rehabilitation – A person with a disability who has received or is receiving vocational rehabilitation services from a State certified agency, an Employment Network, or the U.S. Department of Veterans Affairs;
Ex-felon – a person convicted of a felony and has a hiring date which is not more than one year after the last date on which he was convicted or released from prison.
SSI – a person receiving Supplemental Security Income benefits for any month during the 60 days preceding the date of hire.
To receive a certification that allows an employer to claim the tax credit, the employer must submit certain forms within 28 days of the start date:
IRS Form 8850 (with original signatures)
ETA Form 9061 or ETA Form 9062
Oklahoma Employment Security Commission
Attn: WOTC Unit
P.O. Box 52003
Oklahoma City, OK 73152-2003
Job seekers will complete page 1 of the ETA 8850 when they register for work or when they enter the Welcoming Unit.
When a Center staff member determines that a job-ready applicant is eligible for the WOTC, she/he will complete the ETA 9062.
Form 8850’s – Send copies through e-mail, fax or regular U.S. mail.
Form 9062’s – Send original 8850 and 9062 through U.S. mail. The envelope must be postmarked within 28 days of hire.
Where can I find forms and/or get more information about WOTC?