From the desk of Kay Thomason...

Questions I get asked all the time:

How much does an employer typically get from WOTC?
How much your business gets depends on how long the qualifying employee works for you. As long as the employee reaches 120 hours worked, you will get a tax credit. If the employee reaches 400 hours worked and $6000 in wages earned, you get the maximum amount of tax credit, which is $2400.

Do I only need one certificate for my business or do I need one for each employee?
The certification is for an individual employee, but the tax credit will be applied to your business. A different application must be submitted for every employee that falls under one of the Work Opportunity Tax Credit target groups.

I have a certificate, but I did not get it in time for this years taxes. Have I lost my tax credit?
Absolutely not! An unused WOTC credit can be saved for up to 20 years, or it can be carried back a year. That way you can use it when you need it most.

How much paperwork is involved in applying for the Work Opportunity Tax Credit?
There are two main forms (IRS Form 8850 & 9061) that need to be submitted within 28 days of hiring the WOTC-eligible employee. Any mistakes in the forms could result in a denial. Then there is the verification process, which is different for every target group. Verifying the employee is hardest and longest step in the WOTC process.

How can I know if my employees are WOTC eligible?
Here at WOTC Solutions, we will screen your incoming workforce for free. By attaching to forms to your hiring packet, we can make sure this tax credit doesn't slip through the cracks.

Who qualifies for the WOTC certificate?
You can find a detailed description of the WOTC target groups here at our website. However, the employee will not qualify if they are a family member or have worked for your business before.


I hired someone a few months ago, but I just found out about the Work Opportunity Tax Credit. Can I still apply?
Unfortunately, no. One of the biggest barriers to receiving WOTC certification is the 28 day deadline. All application forms must be completed, signed, and postmarked within 28 days of hiring a WOTC-eligible employee. The state WOTC offices will not process any submissions outside of this deadline.