Work Opportunity Tax Credit(WOTC) Instructional Materials U.S. Department of Labor Employer’s Guide to the Work Opportunity Tax Credit IRS Forms 8850 and 9061 Hand out Employer’s Guide and forms.

What is WOTC? WOTC is a Federal tax credit available to employers who hire and retain individuals from target groups with significant barriers to employment. Employers claim about $1 billion in tax credits each year under WOTC.

Why is WOTC important to Work Force and Economic Development? WOTC incentivizes workplace diversity and facilitates access to good jobs for American workers. The success and growth of this income tax credit for private sector business is beneficial for all who participate, while increasing America’s economic growth and productivity.

How does WOTC benefit Employers? WOTC reduces an employer’s cost of doing business. Employers hiring target group employees may be eligible to reduce their federal income tax liability by as much as $9,600 per employee hired. WOTC requires little paperwork, while helping those in need to find and retain good jobs.

WOTC Target Groups Veterans Long or Short-Term TANF Recipient Active Duty Service > 180 Days Family receives SNAP Assistance Service Connected Disability Unemployed for at least 4 weeks Long or Short-Term TANF Recipient Supplemental Nutrition Assistance Recipient-Food Stamps Designated Community Resident (Rural Renewal or Empowerment Zones) Vocational Rehabilitation Referral Ex-Felon SSI Recipient Summer Youth Employee

Employer Instructions Register as an employer at https://fortress.wa.gov/esd/wotc/Account/LogOn?ReturnUrl=%2f Complete IRS Form 8850 Pre-screening Notice and Certification Request for the Work Opportunity Credit for each eligible new employer within 28 days of hire. Complete ETA Form 9061 Individual Characteristics Form. Submit Completed IRS and ITA Forms to your State Workforce Agency. Receive Final Determination

Filing for the Credit with the IRS After receiving a certification from the State Workforce Agency, employers may file for the credit with the IRS by filing IRS Form 5884 Work Opportunity Credit.

State Regional Coordinator Susan Haerling Resources https://www.doleta.gov/business/incentives/opptax/wotcEmployers.cfm SWA – Washington State Employment Security Department – WOTC Administrative Unit State Regional Coordinator Susan Haerling PO Box 9046 Olympia, WA 98507-9046 360-902-9691 800-3393981

Acknowledgements I In partnership with the Spokane Area Workforce Development Council, the Next Generation Zone consists of agencies that are equal opportunity employers and providers of employment and training services. Auxiliary aids and services are available upon request to persons with disabilities. Washington Relay Service: 711