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The Work Opportunity Tax Credit

The Work Opportunity Tax Credit. W.O.T.C. What is: Work Opportunity Tax Credit W.O.T.C. A Tax Credit available to employers who hire individuals from certain targeted groups. The WOTC can reduce an employer’s federal tax liability by up to $9,000 per new hire. The WOTC has two purposes:.

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The Work Opportunity Tax Credit

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  1. The Work Opportunity Tax Credit W.O.T.C.

  2. What is:Work Opportunity Tax CreditW.O.T.C. • A Tax Credit available to employers who hire individuals from certain targeted groups. • The WOTC can reduce an employer’s federal tax liability by up to $9,000 per new hire.

  3. The WOTC has two purposes: • Promote the hiring of individuals who qualify as a member of a target group • Provide a federal tax credit to employers who hire these individuals

  4. WOTC Target Groups • A - Qualified TANF Recipient • B - Qualified Veteran • C - Qualified Ex-Felon • D - Empowerment Zone Resident • E - Vocational Rehabilitation Referral • F - Qualified 16-17 Year Old Summer Youth • G - Qualified Food Stamp Recipient • H - Qualified SSI Recipient • I - Long-Term Family Assistance • J - Qualified Veteran collecting UI • K - Disconnected Youth

  5. What’s Required? • IRS Form 8850: “Pre-screening Notice and Certification Request,” and • DOL ETA Form 9061: “Individual Characteristics Form,” OR • DOL ETA Form 9062: “Conditional Certification”

  6. Download the forms from the EDD website: www.edd.ca.gov/WOTC

  7. Simple Process • Identify the potential candidate & determine eligibility. • Fill out and sign the 2 forms at the time of hire. • Mail the forms no later than the 28th day after the applicant begins work.

  8. Concluding Highlights • The WOTC provides tax credit opportunities for employers • Specific Target Groups • Only 2 Forms Required • Form needs to be signed ON or BEFORE the hire date. • Must be submitted to the WOTC center no later than the 28th day after the applicant starts work.

  9. For More Information Call the WOTC Center toll-free 1-866-593-0173 Other helpful resources: • WWW.EDD.CA.GOV • WWW.HUD.GOV/EZEC/LOCATOR or HTTP://HUD.ESRI.COM/EGIS • WWW.IRS.USTREAS.GOV • WWW.DOLETA.GOV

  10. Thank You!! Paula Duarte Employment Program Representative Employment Development Department paula.duarte@edd.ca.gov

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