WOTC Overview

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

Contact us today to identify qualifying R&D activities within your organization!

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