The WOTC is a tax credit program that provides employers with an incentive
to hire legal workers who face significant barriers to employment. A brief description
of target groups include:
A member of a family that is receiving or recently
received Temporary Assistance to Needy Families (TANF) for at least 18
consecutive months ending on the hiring date;
A member of a family that is receiving or recently
received TANF benefits for any 9-month period during the 18-month period
ending on the hiring date;
An 18-39 year old member of a family that is
receiving or recently received Food Stamps;
A veteran who is a member of a family that is
receiving or recently received Food Stamps;
A Vocational Rehabilitation Referral who completed or
is completing rehabilitative services from a State certified agency, an
Employment Network, or the U.S. Department of Veterans Affairs;
An ex-felon who has been convicted of a felony and
has a hiring date which is not more than one year after the last date on which
he was so convicted or released from prison;
A recipient of Supplemental Security Income (SSI) benefits.
Tax Credits
The WOTC program is only for new hires and annual tax credits for hiring most
target group members can be as much as:
$2,400 for each new adult hire;
$1,200 for each new summer youth hire; and
$9,000 for each new long-term family assistance recipient hired over a two-year
period.
Minimum Employment or Retention Period
All new adult employees must work a minimum of 120 or up to 400 hours. Individuals
hired as Summer Youth employees must work at least 90 days, between May 1 and
September 15, before an employer is eligible to claim the tax credit.
How Can Employers Participate in WOTC?
To receive certification that a new employee qualifies the employer for this
tax credit, the employer must:
Complete both the ETA Form 9061 and the IRS Form 8850 . Mail
the completed and signed forms within 28 days of the start date to:
The Utah Department of Workforce Services
WOTC Unit, P.O. Box 45249
140 East 300 South
Salt lake City, Utah 84145-0249
IRS
Form 8850, (Work Opportunity Tax Credit
Pre-Screening Notice and Certification Request)