WOTC allows employers that hire members of targeted groups who face employment barriers to claim a credit against income tax of a percentage of first-year wages. In a recent News Release, the IRS reminds employers there are now ten categories of eligible workers:
- Qualified IV-A Temporary Assistance for Needy Families recipients
- Unemployed veterans, including disabled veterans
- Ex-felons
- Designated community Residents living in Empowerment Zones or Rural Renewal Counties
- Vocational rehabilitation referrals; summer youth employees living in Empowerment Zones
- Food stamp (SNAP) recipients
- Supplemental Security Income recipients; long-term family assistance recipients
- Qualified long-term unemployment recipients
Before claiming the credit, employers must first request certification on Form 8850 within 28 days after the eligible worker begins. Though generally ineligible for the credit, tax-exempt organizations can claim the WOTC for hiring qualified veterans.
View more information from the IRS>>>
I joined Hawkins Ash CPAs in 2011. As a manager, my main responsibilities include planning, test of transactions and preparation of financial statements for ERISA audits during outside of tax season. During tax season, I work with compilation and reviews and the preparation of corporate tax returns.
