Work Opportunity Tax Credit Program (WOTC)

Stafford County employers, if hiring employees age 18-39 you are eligible for this program as the County is designated as a Rural Renewal County (RRC).

** Make sure you read ALL of the How to Apply section thoroughly! **

What is the Work Opportunity Tax Credit?

The Work Opportunity Tax Credit (WOTC) is a Federal tax credit available to employers who hire individuals from eligible target groups with significant barriers to employment.  Each year, employers claim over $1 billion in tax credits under the WOTC program.  The success and growth of this income tax credit for business is beneficial for all who participate while increasing America's economic growth and productivity.

• WOTC reduces an employer's cost of doing business, requires little paperwork, and applying for WOTC is simple.

 

• WOTC can reduce and employer's federal income tax liability by as much as $9,600 per employee hired.

 

• There is no limit on the number of individuals an employer can hire to qualify to claim the tax credit.

 

• Certain tax-exempt organizations can take advantage of WOTC by hiring eligible veterans and receiving a credit against the employer's share of Social Security taxes.

How much is the tax credit?

Employers can earn a tax credit of between $1,200 and $9,600 per employee, depending on the target group of the new employee and the number of hours worked in the first year. Employees must work at least 120 hours in the first year of employment to receive the tax credit. Visit the United States Department of Labor website for the maximum tax credit for each WOTC target group. 

Information and Resources

Visit the WOTC website for more information on eligibility requirements, how to apply for the tax credit, and WOTC contracts in your state. 

Visit the IRS website, for more information on how to claim the tax credit. 

Kansas Department of Commerce
Work Opportunity Tax Credit Program
1000 SW Jackson Street, Suite 100
Topeka, KS 66612-2115
Phone: (785) 296-7435  Fax: (785) 368-7108
Email: WOTCWebmail@ks.gov
Visit our website at: kansaswotc.com

Who is eligible?

• Veterans  

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• 18-39 year-old living in a Rural Renewal County (RRC) - Stafford County has this designation

 

• 18-39 year-old SNAP (food stamp) recipient

 

• Recipients of Temporary Assistance for Needy Families (TANF)

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• Vocational Rehabilitation Referral/Ticket to Work Holders

 

• Ex-Felons

 

• Supplemental Security Income (SSI) Recipients

 

• ​Long-Term Unemployment Recipient

Visit the United States Department of Labor website for more target group eligibility information. 

How to Apply:

To apply for WOTC, employers should follow these steps:

1. Complete page one of the IRS Form 8850 by the day the job offer is made. Complete page two of the IRS Form 8850 after the individual is hired. 

2. Complete ETA Form 9061, or complete ETA Form 9062 if the employee has been conditionally certified as belonging to a WOTC target group by a State Workforce Agency, Vocational Rehabilitation Agency, or another participating agency. 

3. Submit the completed and signed IRS and ETA forms to your State Workforce Agency. Forms must be submitted within 28 calendar days of the employee's start date. 

4. Wait for a final determination from your State Workforce Agency. The determination will indicate whether the employee is certified as meeting the eligibility for one of the WOTC target groups. 

5. After the target group employee is certified by the State Workforce Agency, file for the tax credit with the Internal Revenue Service.