Federal Work Opportunity Tax Credit (WOTC)

WHAT IS THE WORK OPPORTUNITY TAX CREDIT?

 WOTC can reduce employer federal tax liability when the employer hires from targeted groups of job seekers who begin work before September 1, 2011. It is one tool in a diverse toolbox of flexible strategies designed to help those job seekers most in need of employment to gain on-the-job experience and move towards economic self-sufficiency.

The WOTC program is only for new hires and annual tax credits for hiring most target group members can receive as much as:

All new adult employees must work a minimum of 120 and up to 400 hours may be applied toward the tax credit. Individuals hired as Summer Youth employees must work at least 90 days, between May 1st and Sept. 15th, before an employer is eligible to claim the tax credit.

WHAT NEW HIRES CAN QUALIFY EMPLOYERS FOR WOTC?

WOTC applies to new hires who begin work between January 1, 2006 and August 31, 2011 and that belong to one of the following target groups:

    1. having attained age 16 but not age 25 on the hiring date,
    2. not regularly attending any secondary, technical, or post-secondary school during the 6-month period preceding the hiring date,
    3. not regularly employed during such 6-month period, and
    4. not readily employable by reason of lacking a sufficient number of basic skills.

HOW CAN EMPLOYERS PARTICIPATE IN THE WOTC?

Employers must apply for and receive certification from the Utah Department of Workforce Services WOTC Unit, verifying that their new hire is a member of a WOTC target group before they can claim the WOTC on their federal tax return. Utah does not accept ETA Form 9062 "Conditional Certifications".

To apply for WOTC certification, employers need only:

The State WOTC office must receive the forms, with original signatures, within 28 calendar days of the new hire's start date, either through U.S. Mail or hand delivery.

The Utah Department of Workforce Services
WOTC Unit,
P.O. Box 45249
140 East 300 South
Salt lake City, Utah 84145-0249
Lanelle Windley
WOTC Coordinator
Phone: 801-526-9480 or 1-800-859-3203 OR
email: lwindley@utah.gov
OR Melissa Romero-Mckean
Employment Specialist
Phone: 801-526-9756;
email: mromero@utah.gov

WHAT HAPPENS AFTER AN APPLICATION IS APPROVED?

You may also obtain forms and instructions at http://www.irs.gov/ or, you can have them mailed to you by calling 1-800-829-3676.
Tax Law Questions should be directed to the IRS or to your tax attorney.

RELATED LINKS AND PROGRAMS

[FrontPage vinavbar Component]
 What's New