CMS Work Opportunity Tax Credit Newsletter May 2022
In this issue:
- Work Opportunity Tax Credits – WOTC – In The News Roundup
- HR.com Speaks with Brian Kelly About iRecruit, and the Work Opportunity Tax Credit
- Work Opportunity Tax Credit Statistics 2021
- WOTC Wednesday: How Long Does It Take To Receive WOTC Tax Credit Certifications?
- Understanding WOTC’s Target Groups: Designated Community Resident
- Work Opportunity Tax Credit Statistics for Colorado
- Make the Switch To Paperless WOTC Screening
- CMS Celebrates 25th Anniversary!
This article provides a roundup of recent news stories related to the Work Opportunity Tax Credit.
Brian Kelly, Managing Partner of CMS iRecruit, speaks with Sue Morton of HR.com Live, to discuss how iRecruit’s unique applicant tracking software facilitates seamless integration AND taps into additional talent pools that give tax service credits using WOTC. In the interview Brian explains to Sue what makes iRecruit different from other ATS systems and how iRecruit provides a unique experience.
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.
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:
- What is a WOTC Designated Community Resident?
- Is There a Best Practice to Make Sure All Employees Participate?
- What is the WOTC Tax Credit Amount for the Long-Term Unemployment Recipient?
New hires who fall under one or more of WOTC’s Target Groups may make you eligible for a WOTC Tax Credit. Target Group #5 is the Designated Community Resident. 163,285 individuals were hired with certification from this group in 2021, 7.80% of the total, making it the third overall certified category.
A DCR is an individual who, on the date of hiring:
- Is at least 18 years old and under 40,
- Resides within one of the following:
- An Empowerment zone
- An Enterprise community
- A Renewal community
- AND continues to reside at the locations after employment.
The maximum tax credit available for hiring a Designated Community Resident is $2,400. Texas hired the most Designated Community Residents last year, at 19,878.
In 2021 the state of Colorado issued 33,866 Work Opportunity Tax Credit certifications. Colorado issued 1.63% of all WOTC Tax Credits in 2021, SNAP was Colorado’s highest tax credit category with 50.19% of certifications for that target group.
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.
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!
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Related: WOTC Newsletter Archive