Work Opportunity Tax Credit (WOTC) Program 2015 Reauthorization
On June 17, 2016, the U. S. Department of Labor issued Training and Employment Guidance Letter (TEGL 25-15) regarding the Work Opportunity Tax Credit (WOTC). The TEGL:
- Reauthorizes previous target groups (qualified TANF recipients, qualified veterans, qualified ex-felons, designated community residents, vocational rehabilitation referrals, qualified summer youth employees, qualified SNAP benefits recipients, qualified SSI recipients, long-term family assistance recipients) for a five-year period from January 1, 2015 through December 31, 2019.
- Provides for an extension of Empowerment Zones from December 31, 2014 to December 31, 2016.
- Introduces a new target group-Qualified Long-term Unemployment Recipient—for new hires that begin to work for an employer on or after January 1, 2016 through December 31, 2019.
- Provides transitional relief for employers submission of IRS Form 8850 in conjunction with IRS Notice 2016-22 and IRS Notice 2016-40 from the 28-day timely filing requirement by providing additional time to file the IRS Form 8850-PreScreening Notice with the State Workforce Agencies (SWAs).
- Additional time for employers that hired or hire members of targeted groups (other than qualified long-term unemployment recipients) between January 1, 2015 and August 31, 2016. All applications must be submitted no later than September 28, 2016. Applicants who begins work for an employer on or after September 1, 2016 are not eligible for the transition relief.
- Additional time for employers that hired or hires Long-term Unemployment Recipients between January 1, 2016 and August 31, 2016. All applications must be submitted no later than September 28, 2016. Applicants who begins to work for an employer on or after September 1, 2016, are not eligible for transition relief.
WOTC Targeted Groups
- Qualified Temporary Assistance to Needy Families (Short-term TANF)
- Qualified Veterans ( SNAP, Disabled, Unemployed)
- Qualified Ex-felons
- Qualified Designated Community Residents (residing in empowerment zone)
- Qualified Vocational Rehabilitation Referrals
- Qualified Summer Youths (residing in empowerment zone)
- Qualifies SNAP Recipients ( Food Stamps)
- Qualified Supplemental Security Income Recipients (SSI)
- Qualified Long-term Family Assistance Recipients
- Qualified Long-term Unemployment Recipients*NEW
WOTC Eligibility Requirements
For job applicants who appear eligible, employers must submit a physical (mail) or electronic (online) application, Pre-Screening Notice and Certification Request for the Work Opportunity, (within 28 calendar days from the employee’s job start date of employment) and the ETA Form 9061- Individual Characteristics Form (ICF) for consideration of the tax credit.
E-WOTC Online Application Processing System
You must register your business/organization to become a user. Follow the steps below:
- Complete and submit Account Profile Form online - APPLY HERE
- 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.
- Upon receipt and approval of the Security Agreement Form, you will receive your E-WOTC login information.
- Login-to-E-WOTC and select options from the account menu.
- Please refer to the User’s Guide for the E-WOTC Application Process and E-WOTC Terms and Conditions for clarifications regarding use of the system.
- Already have a Password - LOGIN HERE
More WOTC Program Information