CMS Work Opportunity Tax Credit Newsletter October 2021
In this issue:
- Significant Increase to the Work Opportunity Tax Credit Proposed
- IRS Encourages Employers to Take Advantage of Work Opportunity Tax Credit
- WOTC Wednesday: What is the WOTC Tax Credit Amount for a Long Term Unemployment Recipient?
- Understanding WOTC’s Target Groups: Qualified Long-Term Unemployment Recipient
- Work Opportunity Tax Credit Statistics for California
- Make the Switch To Paperless WOTC Screening
The Journal of Accountancy recently reported that the Work Opportunity Tax Credit could receive a significant expansion via the the budget reconciliation bill known as the “Build America Back Better” Act which is currently in the Ways and Means Committee.
In a September news release the Internal Revenue Service reminds employers to check out a valuable tax credit available to them for hiring long-term unemployment recipients and other groups of workers facing significant barriers to employment.
CMS’s Brian Kelly answers your questions about the Work Opportunity Tax Credit in our weekly video Q&A series #WOTCWednesday.
Other Recent WOTC Questions Answered:
- If We Hire Temps Can We Claim WOTC?
- On What Tax Form is the WOTC Tax Credit Taken?
- What is the Start Date for WOTC?
New hires who fall under one or more of WOTC’s Target Groups may make you eligible for a WOTC Tax Credit. Target Group #10 is the Qualified Long-Term Unemployment Recipient. 53,774 individuals were hired with certification from this group in 2020, 3.32% of the total, making it the sixth most certified category.
A qualified long-term unemployment recipient is one who has been unemployed for not less than 27 consecutive weeks at the time of hiring and received unemployment compensation during some or all or the unemployment period. Table via Bureau of Labor Statistics shows current unemployment rate, Unemployed 27 weeks or longer (August 2021) is 5.2%.
In 2020 the state of California issued 127,188 Work Opportunity Tax Credit certifications. California issued 7.85% of all WOTC Tax Credits in 2020, and the most overall. SNAP was California’s highest tax credit category with 53.94% of certifications for that category. California received the third most overall WOTC Requests in 2020 at 526,262, and also came first in the number of certifications for the IV-A (TANF) both long and short term categories, Veteran unemp. 6 Mo., and Long Term Unemployment categories.
CMS has been providing Work Opportunity Tax Credit screening services for over 20 years. We have helped save employers millions of dollars that can be reinvested back into their businesses. We highly encourage customers to take advantage of the online WOTC screening form that we developed or the call center, both of which provide several benefits to you.
- Your WOTC Dashboard
- Increased Integration for WOTC Tax Credit to iRecruit, Applicant Tracking Software
- Work Opportunity Tax Credit By The Numbers 2020
- EEOC Issues Formal Opinion on the Work Opportunity Tax Credit
- Important Notice: URL Changes for Online WOTC Forms
- Four Things You Didn’t Know About the Work Opportunity Tax Credit
- WOTC’s Target Groups
- Calculate your WOTC Savings
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Related: WOTC Newsletter Archive