The Work Opportunity Tax Credit (WOTC) program provides tax credits for businesses each time they hire a new, eligible employee. WOTC is designed to assist individuals from certain targeted groups who have consistently faced significant employment barriers with re/entering the labor force. The program does so by providing federal tax credit incentives to employers for hiring these individuals. Businesses can potentially receive a maximum credit anywhere from $1,200 to $9,600 depending on the qualified targeted group hired.. A complete WOTC submission includes IRS Form 8850 and ETA Form 9061.
Eligibility
An employer must hire an employee who is certified as being a member of a WOTC qualified targeted group to qualify. Then the State WOTC Coordinator for WorkForce West Virginia must certify the job applicant is a member of a WOTC qualified targeted group. Lastly, an employer must obtain certification that the individual is a member of a WOTC qualified targeted group in order to claim the credit.
Important Notes:
- WOTC certification requests must be submitted within 28 days of the employee’s start date via the WorkForce WV WOTC online portal or by mail.
- Rehires are not eligible, certification requests must be for a new employee that has never worked for your business before.
- Supporting documentation may be uploaded after the application has been submitted.
You can benefit from hiring within the following groups:
- Temporary Assistance for Needy Families (TANF) recipient
- Supplemental Nutrition Assistance Program (SNAP) recipients
- Empowerment Zone residents
- Rural Renewal Community residents
- Vocational Rehabilitation or Ticket-to-Work Participants
- Recently released ex-felons
- Supplemental Security Income (SSI) recipients
- Disabled veterans who within the last year were discharged or unemployed for more than six months
- Unemployed veterans
- Veterans receiving SNAP
- Long-term unemployment recipient
How to Apply for the Tax Credit
All employers must complete the IRS Form 8850 ( Instructions) and USDOL Form ETA 9061 for new hires. Employers will be the responsible legal forms holder. Once the employer obtains the 8850 and 9061 information, please submit the info via our online application system within 28 days of the employee start date. Employers, and if you choose to employ a third party to manage your WOTC process, must create an account on our online portal to submit applications.
Employers
Start a new account and begin submitting applications on the WOTC Electronic Application portal.
Consultants
A business can choose to employ a third part to manage their WOTC process. If this applies to you email WOTC@WV.gov to start a new account and begin submitting applications for your customers through the WOTC Electronic Application portal.
Paper Applications
If your business opts to mail in WOTC certification requests please complete the following steps:
- Complete the IRS Form 8850, Pre-Screening Notice and Certification Request, for the Work Opportunity Tax Credit. Find instructions here.
- Complete the U.S. Department of Labor ETA Form 9175 Self-Attestation Form for application of the Long-Term Unemployment Recipient category only. This form must be returned following the methods described below.
- Complete the U.S. Department of Labor ETA Form 9061, Individual Characteristics Form. West Virginia does not accept ETA Form 9062, Conditional Certifications.
- Mail signed and dated forms within 28 calendar days of the new hire’s start date to:
WorkForce WV,
ATTN: WOTC Unit
1900 Kanawha Blvd. Suite 400
Charleston, WV 25305
For more information, email WOTC@wv.gov or click here to visit the Department of Labor’s website.