1. 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.

2. 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.

3. 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.

4. 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.

5. 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

6. Employer Instructions
Register as an employer at
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

7. 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.

8. State Regional Coordinator Susan Haerling
Resources
SWA – Washington State Employment Security Department – WOTC Administrative Unit
State Regional Coordinator Susan Haerling
PO Box 9046
Olympia, WA

9. 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