WOTC Program Overview
The Work Opportunity Tax Credit (WOTC) is a federal tax credit available to employers as an incentive to hire job seekers from target groups who consistently experience high rates of unemployment. Employers can receive a credit ranging from $1,200 to $9,600. Employers must apply and receive a certification verifying the new hire is a member of a target group before they can claim the credit.
Eligible Target Groups and Tax Credit Amounts
- Short-Term Recipients of Temporary Assistance to Needy Families (TANF) – $2,400
- Veterans – $2,400, $4,800, $5,600, or $9,600
- Ex-Felon – $2,400
- Designated Community Resident – $2,400
- Vocational Rehabilitation Referral – $2,400
- Summer Youth – $1,200
- Supplemental Nutrition Assistance Program Recipient – $2,400
- Supplemental Security Income Recipient – $2,400
- Long-Term Family Assistance Recipient – $9,000
- Long-Term Unemployment Recipient – $2,400
The WOTC Eligibility Desk Aid explains in detail the different target groups, and the eligibility criteria.
Who Does Not Qualify for the WOTC
- Self-employed
- Relatives of the employer
- Individuals rehired by an employer (former employees)
Steps To Apply for the Credit
- Log into account or sign up for an account.
- Complete the IRS Form 8850 and the ETA Form 9061.
- Submit the full application.
- Receive a Final Determination.
- Claim the Credit with the IRS.
There are two forms that an employer must complete to submit a full application:
IRS Form 8850 Pre-Screening Notice and Certification Request for the Work Opportunity Credit
ETA Form 9061 Individual Characteristics Form (ICF) Work Opportunity Tax Credit
Forms are to be completed online at wotc.eHawaii.gov. These forms MUST be submitted within 28 calendar days after the new hire’s start date.
Inquiries into the WOTC Program can be made to the WOTC Program Coordinator (call 808-586-8700 or email [email protected]).
To visit the Federal Department of Labor’s site on WOTC, click HERE.
