Tax Incentive For Hiring Individuals with Disabilities
What is WOTC?
The Work Opportunity Tax Credit was established in 1996 and was designed to assist individuals from certain targeted groups to enter or re-enter the labor force. Your company could be eligible to receive a tax credit because our clients fall under one of the 9 target groups: Vocational Rehabilitation Referral.
What is my business entitled to receive as a tax credit?
"The tax credit for this target group is calculated at the rate of 25% of the qualified first-year wages up to $6,000 for employees working at least 120 hours, but less than 400 hours. This allows a maximum credit amount of $1,500. For employees working at least 400 hours or more, the credit is calculated at the rate of 40% of the qualified first-year wages up to $6,000. This allows a maximum credit amount of $2,400." Source: www.nhworks.org
How does it work?
We provide you with two things to process this paperwork with your state's Workforce Agency, once certified, you then submit to the Internal Revenue Service (IRS):
- A WOTC Pre-Screening Notice (IRS Form 8850) - to be completed on or before the day the job offer is made
- An Individual Characteristics Form (ETA 9061) - requires supporting documentation, see next bullet
- A letter from The PLUS Company stating our client's activity with our agency as the "provider agency" - See Sample Letter Here
IMPORTANT: Forms must be submitted no later than 28 days after the start work date. We typically round this paperwork up either before our person starts or during the first week of employment.
Where do I mail the information?
- New Hampshire Employment Security, WOTC Certifying Unit - Operations, 45 South Fruit Street, Concord, NH 03301-4857. For questions about WOTC in NH, contact Keith Badger, State WOTC Coordinator, (603)228-4079 or at firstname.lastname@example.org
- Work Opportunity Tax Credit Unit, Department of Career Services, 19 Staniford Street, Boston, MA 02114. For questions about WOTC in MA, contact Department of Career Services at (617)626-5353.
- Federal: https://www.doleta.gov/business/incentives/opptax/
- NH: http://www.nhworks.org/employers/hiring-incentives/work-opportunity.aspx
- MA: http://www.mass.gov/lwd/employment-services/one-stop-career-centers/special-programs/wotc-program.html