CMS Work Opportunity Tax Credit Newsletter April 2022
In this issue:
- CMS Celebrates 25th Anniversary!
- New Military Spouse Bill Could Expand Work Opportunity Tax Credit’s Target Groups
- Work Opportunity Tax Credit Statistics 2021
- WOTC Wednesday: What Are the Reasons WOTC Applications Get Denied?
- Understanding WOTC’s Target Groups: Ex-Felon
- Work Opportunity Tax Credit Statistics for Arizona
- Make the Switch To Paperless WOTC Screening
CMS Celebrates 25th Anniversary!
CMS is celebrating 25 years in business! back in 1997 Brian Kelly started “CMS” in the HR software and tax credit business, supporting businesses across the New England area. We developed our own software for both tax credits (WOTC) and iRecruit, Applicant Tracking and Remote Hiring Software. Congratulations Brian!
New Military Spouse Bill Could Expand Work Opportunity Tax Credit’s Target Groups
Senator Tim Kaine D-VA, is leading a bipartisan group introducing a bill to add Military Spouses to the Work Opportunity Tax Credit target groups. The “Military Spouse Hiring Act” (S.3909 – A bill to amend the Internal Revenue Code of 1986 to make employers of spouses of military personnel eligible for the work opportunity credit), was introduced to the Senate Finance on March 23rd.
Work Opportunity Tax Credit Statistics 2021
MARCH 2021 – The latest statistics for the Work Opportunity Tax Credit from 2021 have recently been released by the U.S. Department of Labor, and the data shows that a total of 2,081,474 total Work Opportunity Tax Credits were issued in the United States in 2021. This represents an almost 28% increase over the previous years 2020 (1,620,806 credits), and shows the continued impact of COVID-19 on the U.S. economy.
WOTC Wednesday: What Are the Reasons WOTC Applications Get Denied?
CMS’s Brian Kelly answers your questions about the Work Opportunity Tax Credit in our weekly video Q&A series #WOTCWednesday.
Other Recent #WOTCWednesday Questions Answered:
- If We Hire Temporary Employees, Can We Claim the WOTC Tax Credits?
- How many WOTC Target Groups are there, and what do they represent?
- Are Salaried or Exempt Employees Eligible for the WOTC Program?
Understanding WOTC’s Target Groups: Ex-Felon
New hires who fall under one or more of WOTC’s Target Groups may make you eligible for a WOTC Tax Credit. Target Group #4 is the Ex-Felon. 67,791 individuals were hired with certification from this group in 2021, 3.26% of the total, making it the fifth overall certified category.
A “qualified ex-felon” is a person hired within a year of:
- Being convicted of a felony or
- Being released from prison from the felony
The maximum tax credit available for hiring a Qualified Ex-Felon is $2,400. Texas hired the most ex-felons last year, at 8,636. (Why you shouldn’t overlook hiring Ex-Offenders.)
Work Opportunity Tax Credit Statistics for Arizona
In 2021 the state of Arizona issued 23,637 Work Opportunity Tax Credit certifications. Arizona issued 1.14% of all WOTC Tax Credits in 2021, SNAP was Arizona’s highest tax credit category with 70.77% of certifications for that target group. Arizona is also one of the top four states with the most pending requests for certifications.
Make the Switch to Paperless WOTC Screening
CMS has been providing Work Opportunity Tax Credit screening services for 25 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.
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Related: WOTC Newsletter Archive