Tax Credits

The Work Opportunity Tax Credit (WOTC) is a federal tax credit program offering significant incentives for employers who hire and retain individuals from specific target groups that have in the past experienced difficulty in securing employment.

Employers can:

  • Receive tax credits for hiring individuals from targeted groups yet still make their own hiring decisions.
  • Reduce their federal tax liability by as much as $2,400 per new hire during their first year of employment.
  • Help those most in need to become economically self-sufficient.
  • Hire as many qualified employees as their payroll will allow.
  • Reduce their recruitment and training costs.
  • Claim the tax credit with minimal paperwork.
  • Provide valuable on-the-job experiences to qualified job seekers.

How does an employer apply for the tax credit?

Employers must complete two forms: 1) Internal Revenue Service (IRS) 8850--Prescreening Notice and Certification Request, and 2) Employment and Training Administration (ETA) 9061--Individual Characteristics Form. Employers must provide required documentation and original signatures. Employers must meet the filing deadline-applications must be postmarked within 28 days of start work date.

How can an employer get the required forms?

Both the IRS 8850 and the Department of Labor ETA 9061 may be downloaded from the WOTC homepage: http://www.doleta.gov/business/incentives/opptax/

OR

Employers may call the WOTC state office at (304) 558-5050 to request forms.
 

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