work opportunity tax credit (wotc)
DESCRIPTION
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?. - PowerPoint PPT PresentationTRANSCRIPT
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?
• 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);
Veteran - who is a member of a family that is receiving or has received SNAP/food stamps;
Disabled Veteran – Entitled to compensation for a service-connected
disability and was released from active duty in the last 12 months. Wages capped at $12,000.00. This allows as maximum credit amount of $4,800.00.
Veteran with a service-connected disability who are unemployed for at least 6 months of the last 12 months of hire. Wages capped at $24,000.00. This allows as maximum credit amount of $9,600.00.
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.
How does an employer apply for the WOTC?• 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
Where does an employer submit WOTC forms?
Oklahoma Employment Security CommissionAttn: WOTC UnitP.O. Box 52003
Oklahoma City, OK 73152-2003
Where do employers get the ETA Form 8850?
• Job seekers will complete page 1 of the ETA 8850 when they register for work or when they enter the Welcoming Unit.
How does the ETA Form 9062 get completed?
• When a Center staff member determines that a job-ready applicant is eligible for the WOTC, she/he will complete the ETA 9062.
How do I know if someone is eligible?GROUP CODE
TARGET GROUP QUALIFICATIONS REQUIRED
DOCUMENTATION
AQualified IV-A Recipient (TANF)
Applicant has received qualified IV-A benefits for at least 9 of the last 18 months. AFDC Records
BQualified VeteranDisabled Veteran
A Veteran who meets the qualifications regarding length of service time and has received Food Stamps for at least 3 months within the last 15 months; oris entitled to compensation for a service connected disability .
DD-214VA RecordsFood Stamp RecordsUI Wage Records
CEx-felon
Applicant was convicted of a felony or released from prison within the last year (Work Release program included).
Documentation that shows conviction and/or release dates. (TWC Form E-37, Correctional Institution Records, Court Record, letter from Probation Officer, etc.
GROUP CODE
TARGET GROUP QUALIFICATIONS REQUIRED
DOCUMENTATION
D
Designated Community Resident
Applicant is between the ages of 18 – 40 on the date of hire and lives within an Empowerment Zone, Enterprise Community or *Rural Renewal County .
*(Alfalfa, Beaver, Cimarron, Custer, Dewey, Ellis, Grant, Greer, Harmon, Harper, Kiowa, Major, Roger Mills, Seminole, Tillman and Woodward).
Age Documentation (such as a birth certificate) is required. A Current utility bill, etc is necessary for proof of address. A driver’s license showing the address entered on the 8850 is proof of Age and Address.
E
Vocational Rehabilitation Referral
Applicant was referred by a rehabilitation agency approved by the State or Department of Veteran Affairs.
Documentation showing Applicant is/has been receiving services through a State rehabilitation agency or vocational program through the V.A.
GROUP CODE
TARGET GROUP QUALIFICATIONS REQUIRED
DOCUMENTATION
F
Qualified Summer Youth Employee
Perform services for the employer between May 1 and Sept 15, is 16 or 17 years of age on the hiring date, has not been employed by the same employer before lives within an EZ or EC.
Age Documentation (such as a birth certificate) is required. A Current utility bill, etc is necessary for proof of address. A driver’s license showing the address entered on the 8850 is proof of Age and Address. The parent’s or guardian signature is required on the WOTC paperwork.
G
Qualified Food Stamp Recipient (SNAP)
Applicant is at least 18 but not yet 40 on the hiring date, is a member of a family that received food stamps for the last 6 months or 3 of the last 5 months, but is no longer eligible to receive them.
Age (such as a birth certificate or driver’s license) and food stamp documentation is required.
HQualified SSI Recipient
Applicant received Supplemental Security Income (SSI) for any month during the 60 days before the date of hire.
SSI Records, evidence of SSI Insurance
GROUP CODE
TARGET GROUP QUALIFICATIONS REQUIRED
DOCUMENTATION
ILong-term Family Assistance Recipient
Applicant is a member of a family that received TANF/AFDC for at least 18 consecutive months or whose benefits expired after 08-05-97 and who has a hire date that is no more than 2 years after their eligibility expired.
AFDC Records
J Unemployed Veteran
An unemployed veteran discharged during the five-year period prior to hiring and received unemployment compensation for more than 4 weeks during the year before their start date.
DD-214
K Disconnected Youth
A person 16 – 24 years old, who has not regularly attended any secondary, technical or post-secondary school during the 6 month period before hire, was not regularly employed during that 6 month period and lacked basic employment skills.
Proof of Age (Birth certificate, driver’s license, etc)
GROUP CODE
TARGET GROUP QUALIFICATIONS REQUIRED
DOCUMENTATION
L Ticket to Work
Ticket to Work holder which has been issued by the Social Security Administration for those who choose to participate in the Ticket to Work Program.
Verified through MAXIMUS
M Disabled Veteran
A Veteran entitled to compensation for a service connected disability and has a start date not more than 1 year after having been discharged from active duty, OR who has a service connected disability and has been unemployed for at least 6 of any of the last 12 months.
DD-214VA Records
How do I send forms to the WOTC Unit?
• 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?
• Visit: www.oesc.ok.gov and click on Tax & Training Incentives, then click on WOTC.
Note: For your convenience, all WOTC forms found on the website are fillable!
Thank You!
WOTC Program Contacts:
Debra Roseburr, Program [email protected]
orDavid Slimp, Program Coordinator
Phone: 405-557-7128Fax: 405-557-7105