Work Opportunity Tax Credit (WOTC)

1. Work Opportunity Tax Credit(WOTC)

2. What is the Work Opportunity Tax Credit? WOTC is an OPPORTUNITY to provide gainful employment to a person with barriers while rewarding the employer who hired them.

3. How do employers qualify for the tax credit? By hiring an employee who belongs to one of the following target groups: TANF - a member of a family that is receiving or has received TANF benefits for any 9-month period during the 18-month period ending on the hiring date;

4. Long-Term Family Assistance - A member of a family that is receiving or has received assistance for at least 18 consecutive months ending on the hiring date; SNAP - A person 18 – 39 years old, who is a member of a family that is receiving or has received Designated Community Resident - A person 18 – 39 years old, who is a resident of one of the federally designated Empowerment Zones (EZs), Enterprise Communities (ECs), or Renewal Communities (RCs);

5. Veteran- who is a member of a family that is receiving or has received SNAP/food stamps; • Disabled Veteran– • Entitled to compensation for a service-connected disability and was released from active duty in the last 12 months. Wages capped at $12,000.00. This allows as maximum credit amount of $4,800.00. • Veteran with a service-connected disability who are unemployed for at least 6 months of the last 12 months of hire. Wages capped at $24,000.00. This allows as maximum credit amount of $9,600.00.

6. Unemployed Veteran – Veterans who received Unemployment Insurance benefits for at least 4 weeks. Wages capped at $6,000.00 This allows as maximum credit amount of $2,400.00.. Veterans who received Unemployment Insurance benefits for at least 6 months. Wages capped at $14,000.00 . This allows a maximum credit $5,600.00. Vocational Rehabilitation – A person with a disability who has received or is receiving vocational rehabilitation services from a State certified agency, an Employment Network, or the U.S. Department of Veterans Affairs;

7. Ex-felon – a person convicted of a felony and has a hiring date which is not more than one year after the last date on which he was convicted or released from prison. SSI – a person receiving Supplemental Security Income benefits for any month during the 60 days preceding the date of hire.

8. How does an employer apply for the WOTC? To receive a certification that allows an employer to claim the tax credit, the employer must submit certain forms within 28 days of the start date: IRS Form 8850 (with original signatures) ETA Form 9061 or ETA Form 9062

9. Where does an employer submit WOTC forms? Oklahoma Employment Security Commission Attn: WOTC Unit P.O. Box 52003 Oklahoma City, OK 73152-2003

10. Where do employers get the ETA Form 8850? Job seekers will complete page 1 of the ETA 8850 when they register for work or when they enter the Welcoming Unit.

11. How does the ETA Form 9062 get completed? When a Center staff member determines that a job-ready applicant is eligible for the WOTC, she/he will complete the ETA 9062.

12. How do I know if someone is eligible?

17. How do I send forms to the WOTC Unit? Form 8850’s – Send copies through e-mail, fax or regular U.S. mail. Form 9062’s – Send original 8850 and 9062 through U.S. mail. The envelope must be postmarked within 28 days of hire.

18. Where can I find forms and/or get more information about WOTC? • Visit: www.oesc.ok.govand click on Tax & Training Incentives, then click on WOTC. • Note: For your convenience, all WOTC forms found on the website are fillable!

19. Thank You! WOTC Program Contacts: Debra Roseburr, Program Manager debra.roseburr@oesc.state.ok.us or David Slimp, Program Coordinator David.slimp@oesc.state.ok.us Phone: 405-557-7128 Fax: 405-557-7105