Federal Work Opportunity Tax Credit Program Overview

The Work Opportunity Tax Credit (WOTC) is a Federal Tax Incentive program, available to all U.S. businesses, with two purposes:

• Promote the hiring of individuals who qualify as a member of a targeted demographic group
• Provide a federal tax credit to employers who hire these individuals

The credit per qualified employee can equal:

• >$9,600 for disabled, long-term unemployed veterans
• >$9,000 for long-term TANF recipients
• >$5,600 for long-term unemployed veterans
• >$4,800 for disabled veterans (discharged within one year of hire date)
• >$2,400 for all other groups

To be eligible for a WOTC credit, a new hire must meet one of the eligibility criteria including, but not limited to, the following:

• Long-Term unemployed individual receiving unemployment
• Temporary Assistance for Needy Families (TANF) recipient
• Supplemental Nutrition Assistance Program (SNAP) recipient
• Supplemental Security Income (SSI) recipient
• Qualified Disabled and/or Unemployed Veteran
• Qualified Ex-Felon
• Designated Community Resident
• Vocational Rehabilitation Referral – Services from a State-certified agency, an Employment Network under the Ticket to Work program

To apply for the credit:

• Employer must register at https://propelconsultinggroup.com/register-wotc/ and complete the required
  Power of Attorney form so that Propel Consulting may discuss only your WOTC issues with the IRS and associated state agencies
• An individual with authority to bind the company should sign the POA
• At the time of hire, employer should provide new hire with login and password for the evaluation page
  found at https://propelconsultinggroup.com/evaluate-wotc/
• Employer will then receive email identifying the employee as potentially qualified or not qualified
• Propel Consulting Group will file all required paperwork with the certifying agencies
• Propel Consulting Group will contact employer with listing of qualified employees and request payroll
  data so the tax credit can be calculated

General Requirements & Information:

• Application for certification must be submitted with 28 days of employee’s hire date
• No retroactive applications accepted
• Credit is claimed on business or shareholder federal income tax returns
• Credits that cannot be claimed on current year tax return may be carried forward up to 20 years