CMS Work Opportunity Tax Credit Newsletter November 2020

In this issue:

Senator Rob Portman (R-OH) Calls to Make Work Opportunity Tax Credit Permanent
A Word on WOTC’s Renewal
Increased Integration for WOTC Tax Credit to iRecruit, Applicant Tracking Software
Understanding WOTC’s Target Groups: Long Term Family Assistance
Work Opportunity Tax Credit Statistics for Georgia
WOTC Questions: Hiring Veterans
Switch To Paperless WOTC Screening
#ICYMI

Senator Rob Portman (R-OH) Calls to Make Work Opportunity Tax Credit Permanent

Senator Rob Portman (R-OH) made an appearance on the Urban-Brookings Tax Policy Center podcast “Dollars and Sense” in which he called for an expansion of the Work Opportunity Tax Credit making it permanent, and to update the qualifying categories due to Covid-19.

A Word on WOTC’s Renewal

As you may be aware, the Work Opportunity Tax Credit is scheduled to expire on 12/31/2020. Law360 has recently reported that the renewal Of Tax Extenders (WOTC is part of this package) may have to wait until next year due to the ongoing focus on the Coronavirus pandemic. A potential expiration does not mean we stop processing WOTC. We encourage all employers to continue screening, within the 28 days of hire, so that you do not miss out on tax credits. Historically, if WOTC is allowed to expire, Congress will authorize retroactive screening which will cover the period of expiry.

Increased Integration for WOTC Tax Credit to iRecruit, Applicant Tracking Software

The streamlined integration allows iRecruit customers to increase their WOTC participation, quickly identify potentially qualified candidates through reporting and dashboard widgets, as well as the applicant profile page. The integration also allows for reporting of new hires, which speeds up the reporting process to state workforce agencies.

Understanding WOTC’s Target Groups: Long-Term Family Assistance 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 #9 is the Long-Term Family Assistance Recipient, which is the only credit that is taken over two years.

A “long term family recipient” is an individual who at the time of hiring is a member of a family that meet one of the following conditions:

Received assistance under an IV-A program for a minimum of the prior 18 consecutive months; OR
Received assistance for 18 months beginning after 8/5/1997 and it has not been more than 2 years since the end of the earliest of such 18-month period; OR
Ceased to be eligible for such assistance because a Federal or State law limited the maximum time those payments could be made, and it has been not more than 2 years since the cessation.

California issued the most certificates for this target group in 2018 and 2019. Long-Term Family Assistance Recipient accounted for 3.32% of all credits in 2019.

WOTC Questions: When referring to target groups, how does a Long-Term Family Assistance recipient differ from a TANF recipient?

Work Opportunity Tax Credit Statistics for Georgia

In 2019 the state of Georgia issued 92,679 Work Opportunity Tax Credit certifications. Nationwide the peach state issued 4.48% of all WOTC Tax Credits in 2019, and came first in the Veteran unemp. 4 Wk category. SNAP recipients were Georgia’s largest category at 67.33%.

WOTC Questions: Hiring Veterans

I am a recruiter for a national retailer and want to start a veteran hiring campaign. Any ideas of where to post openings to attract veterans?

Other Recent WOTC Questions Answered:

Switch to Paperless WOTC Screening

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.