The WOTC has two purposes: To promote the hiring of individuals who qualify as a member of a target group. To provide a federal tax credit to employers who hire these individuals. When an employer hires an individual who meets the criteria for this program, they may be able to claim federal tax credits against wages paid. Group B — Qualified Veterans Any qualified veteran who is: Ba - a member of a family that received food stamps, i.
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The WOTC has two purposes: To promote the hiring of individuals who qualify as a member of a target group. To provide a federal tax credit to employers who hire these individuals. When an employer hires an individual who meets the criteria for this program, they may be able to claim federal tax credits against wages paid.
Group B — Qualified Veterans Any qualified veteran who is: Ba - a member of a family that received food stamps, i. Note: To be considered a qualified veteran for this purpose, the individual must meet these two standards: Served on active duty, not including training, in the U. Armed Forces for more than days or have been discharged or released from active duty for a service-connected disability; and Not have a period of active duty, not including training, of more than 90 days that ended during the day period concluding on the hiring date.
Has a hire date that is not more than one year after the last date on which the individual was convicted if not incarcerated or was released from prison. Group E — Qualified Vocational Rehabilitation Referral Any individual who: Has a physical or mental disability which results in a substantial barrier to employment, and Is hired within two years of receiving those services.
Group I — Qualified Long-Term Family Assistance Recipient Any individual who: Has received Temporary Assistance to Needy Families TANF , or a successor program, for at least 18 consecutive months ending on the hiring date, or Has received TANF for a total of at least 18 months, whether or not the months are consecutive, beginning after August 5, , and whose hiring date is not more than two years after the end of the earliest month period, or Whose TANF eligibility expired, and has a hiring date within two years of the TANF eligibility expiration date, but after August 5, Group L — Qualified Long-Term Unemployment Recipient Any individual who: On the day before the individual begins work for the employer, or, if earlier, the day the individual completes the IRS Form as a prescreening notice, is in a period of unemployment that is not less than 27 consecutive weeks, and Includes a period which may be less than 27 weeks in which the individual received unemployment compensation under State or Federal law.
Retention In order to claim the tax credit, the employee must be retained hours or more for a 40 percent tax credit on qualified first year wages. For the employee that is retained at least hours but less than hours, a 25 percent credit is available on qualified first year wages.
Determining Eligibility The employer must first determine if the applicant is willing to provide the required information. Prospective employees are not required to provide information of this sort to an employer. Their participation must be voluntary. The IRS Form must be completed on or before the day the applicant is offered employment.
Work Opportunity Tax Credit Form Field Explanations
The second form must meet the day filing requirement in order for it to be considered timely and in order for Job Service to consider it for processing. WOTC — Forms and Publications If you need a response, please locate the contact information elsewhere frm this page or in the footer. Employers can obtain copies of IRS by visiting www. Have your company representative complete, sign, and date the back of the form.
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