Work Opportunity Tax Credit Program

Work Opportunity Tax Credit (WOTC) Program

On January 3, 2013, the President signed into law the American Tax Payer Relief Act of 2012, which authorizes an extension of the WOTC program:

• Continues authorization of all veteran target groups (including those implemented under the VOW to Hire Heroes Act) until December 31, 2013
• Retroactively reauthorizes all WOTC non-veteran target groups, from December 31, 2011 to December 31, 2013
• Retroactively reauthorizes Empowerment Zones, which determines eligibility for the summer youth target group, from December 31, 2011 to December 31, 2013

The Work Opportunity Tax Credit (WOTC) is a federal income tax credit that provides incentives to private for-profit employers to encourage the hiring of individuals from certain targeted groups of jobseekers who traditionally have difficulty finding employment.

Employers can reduce their federal income tax liability up to $9,600 during the first year of employment of a member of a targeted group, depending on the target group. There is no limit to the number of qualified employees for which an employer may receive this tax credit.

WOTC Targeted Groups

• Qualified Temporary Assistance to Needy Families Recipients
• Qualified Veterans/Disabled Veterans/ Unemployed Veterans
• Qualified Ex-felons
• Qualified Designated Community Residents (residing in an Empowerment Zone)
• Qualified Vocational Rehabilitation Referrals
• Qualified Summer Youth (residing in an Employment Zone)
• Qualified Food Stamp Recipients
• Qualified Supplemental Security Income Recipients
• Qualified Long-term Family Assistance Recipients

Eligibility Requirements

For job applicants who appear eligible, employers must submit a physical (mail) or electronic (online) application, a Pre-Screening Notice and Certification Request for the Work Opportunity Credit within 28 days of the employee’s employment start date.

Forms

The forms required for the Work Opportunity Tax Credit are:

1. Pre-Screening Notice Form – IRS Form 8850 
2. Individual Characteristics Form – ETA Form 9061
3. Eligibility Verification Form

WOTC eligible workers must be employed for a minimum of 120 hours to qualify for a tax credit.

Note: Employers must employ Summer Youth Workers between May 1st and September 15th.

Apply for the WOTC Program

Submit Your Pre-screening Notice and Certification Online Through e-WOTC

Electronic WOTC (e-WOTC) is a paperless alternative to the traditional WOTC application process. Florida’s new e-WOTC process eliminates mailing paper documents to and from the Department of Economic Opportunity.

Employers must first request an e-WOTC account by completing the online e-WOTC Account Request form. Follow the steps below.

1. Complete and submit Account Profile Online Form.
2. Print, complete, sign and notarize the Security Agreement Form. Return the Security Agreement Form by mail to the WOTC Security Officer. The mailing address is indicated on the form.
3. Upon receipt and approval of the Security Agreement Form, you will receive your e-WOTC login information.
4. Login to e-WOTC and select options from the account menu. See the demonstration video below.
5. Please refer to the User's Guide of the e-WOTC Application Process and e-WOTC Terms and Conditions below for clarification regarding use of the system.

Read e-WOTC Terms and Conditions 

Read User's Guide to the e-WOTC Application Process

Submit Your Request for Certification by Mail

Send signed Request for Certification documents (IRS Form 8850 and ETA Form 9061) to the address below.

Department of Economic Opportunity

WOTC Tax Credit Program

MSC #G-300, Caldwell Building

107 East Madison Street

Tallahassee, Florida 32399-4140

More WOTC Program Information

Learn more about the WOTC program, eligibility requirements and documentation guidelines through the following resources.

• WOTC Program Fact Sheet
• U.S. Department of Labor Website
• WOTC Target Groups Documentation Guidelines
• WOTC Handbook