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Work Opportunity Tax Credit

How To Apply

To apply for WOTC, an employer or employer representative must submit IRS Form 8850 and ETA Form 9061 (or 9062, where applicable) within 28 days of the new hires’ start date to Department of Employment Services (DOES) to the attention of the WOTC Coordinator. The 28-day statutory requirement is disallowed only if the US Department of Labor or IRS applies a period of transition relief. If you are an employer representative, IRS Form 2848 or another form of a valid Power of Attorney is required. The application should include documentation to support the verification of the identified target group, if applicable. Submissions may be received electronically through our WOTC database. Email [email protected] to inquire about access to our WOTC database.

UPDATE: A Period of Transition Relief is Effective for WOTC until September 29, 2016.

IRS Notice 2016-22 and IRS Notice 2016-40, provide employers, including qualified tax-exempt organizations, with transition relief from the 28-day timely filing requirement by providing additional time to file the pre-screening notice, IRS Form 8850, with 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. An employer that hired or hires a member of a targeted group (described in§ 51(d)(l)(A) through  (d)(l)(I) of the Code) who began or begins work for that employer on or after January 1, 2015, and on or before August 31, 2016, will have satisfied the requirements of§ 51(d)(13)(A)(ii) of the Code if the employer submits completed IRS Form 8850 to the SWA to request certification no later than September 29, 2016.
  • Additional time for employers that hired or hire long-term unemployment recipients between January 1, 2016 and August 31, 2016. An employer that hired or hires an individual who is a long-term unemployment recipient (described in § 51(d)(1)(J) of the Code) and who began or begins work for that employer on or after January 1, 2016, and on or before August 31, 2016, will have satisfied the requirements of§ 51(d)( 13)(A)(ii) of the Code if the employer submits the completed IRS Form 8850 to the SWA to request certification no later than September 29, 2016.
  • Application of 28-day requirement to individuals hired on or after September 1, 2016. An employer that hires a member of a targeted  group (described  in § 51(d)(l)(A) through (d)(l )(J) of the Code), including a long-term unemployment recipient, who begins work for that employer on or after September 1, 2016, is not eligible for the transition relief described in this notice.

Minimum Employment or Retention Period – In addition to belonging to one of the eight groups outlined above, all new adult employees must work a minimum of 120 hours for the employer to qualify to claim WOTC.

Ineligible Populations – The following individuals or groups of individuals do not qualify for WOTC, even if they meet the other eligibility criteria:

  • Employer's relatives and dependents
  • Majority owners of the employer
  • Former employees