WOTC & Who Are Qualified for WOTC Programs –

Introduction –

WOTC also known as Work Opportunity Tax Credit, is a kind of federal tax credit which is made available to the people (employers) who have appointed and retained qualified veterans and other kinds of individual people from the target groups, who have historically faced hindrances in getting a secure form of employment. To learn and understand more about WOTC meaning, continue reading. This is a kind of program which develops an opportunity for the people (economic opportunities) which is likely to reduce the burden on other assistance programs of the government. Now, let’s look at how the WOTC program work. In this, the qualified tax-exempt firms and taxable employers will hire someone or an individual who is a member of the WOTC target group, & they can apply for a general business credit against income tax.

Screening Process and WOTC Certification –

Prior to any employer claiming a WOTC, they should first get certification from a SWA i.e., State Workforce Agency. Also, the employer should be able to show that the new employee or individual hired meets the qualification of one of the target groups. And, this can be done using form no. 8850n IRS and one of the two forms from the Labor Department. Plus, the applicant will be given ETA form no. 9061, or the ICF (Individual Characteristics Form) and that will tell as to how the employee being hired (applicant) have answered the WOTC questions. Next, comes the ETA form no. 9062 which is a conditional certification form for the employees being hired/applicants and they have been pre-screened for the WOTC by a State Workforce Agency (SWA). It is mandatory, that both the forms above mentioned should be with form no. 8850 for submissions.  

Details About Form No. 8850 –

From a qualified employees (being hired/applicants) start date, the employers are given 28 days to send form no.8850, which is also known as Certification Request and Pre-Screening Notice for the WOTC, to the SWA (State Workforce Agency), which is applicable in the present case. The first i.e., 1^st page on the form is required to be completed by the employee (being hired/hired/applicant) on or before the day of the work (job) offer. It mainly outlines the conditions that someone from one of the target groups, should meet to qualify the program. The next page, i.e., 2^nd page is meant for the employers. In that, they will have to provide the business contact details and applicant’s (employee being hired)’s key employment connected dates.

Some of the Common Queries –

In the WOTC questionnaire, page 1 of the form no.8850 is regarding the questions which the applicants need to answer about any military service, or government assistance programs participation, or some kind of recent unemployment and other questions targeted. Many people have a common query, as to who gets qualified for the WOTC? So, it is the employer who may get qualified for WOTC, if they choose an individual who is a member of the target groups which is identified/determined by the IRS i.e., those who have historically faced hindrances to employment. Another question that people might have on their mind is the employees eligible under the WOTC program. So, continue reading to know more about such employees.

Groups Considered Target Groups Under the WOTC Program –

• Qualified long-term and short-term IV-A recipients (temporary help for the needy families)
• Veterans who are qualified
• Ex-felons
• DCR (designated community residents)
• Vocational rehabilitation referrals
• Summer youth employees
• SNAP recipients (Supplemental Nutrition Assistance Program)
• SSI recipients (Supplemental Security Income)
• Qualified long-term unemployment recipients.