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CMS Work Opportunity Tax Credit Newsletter April 2023
In this issue:
- Tips to Maximize WOTC Participation and Increase Savings
- The Work Opportunity Tax Credit (WOTC) Statistics 2022
- Why Switch to a Paperless WOTC Screening Process
- WOTC Wednesday: What Are the Reasons WOTC Applications Get Denied by the State Workforce Agency?
- Understanding WOTC’s Target Groups: Designated Community Resident (DCR)
- Work Opportunity Tax Credit Statistics for Illinois
- #ICYMI
Tips to Maximize WOTC Participation and Increase Savings
We would like to offer you some tips to make sure you get the maximum tax credit available.
The Work Opportunity Tax Credit (WOTC) Statistics 2022
MARCH 2023 – Cost Management Services, LLC, a provider of Work Opportunity Tax Credit screening and administration is pleased to announce that the latest statistics for the Work Opportunity Tax Credit from 2022 have recently been released by the U.S. Department of Labor. The data shows that a total of 2,569,646 total Work Opportunity Tax Credits were issued in the United States in 2022. This represents an almost 23.45% increase over the previous year
Why Switch to a Paperless WOTC Screening Process
CMS’s online web link screening system screens your WOTC new hires with ease. The benefits of using the online screening system include…
WOTC Wednesday: What Are the Reasons WOTC Applications Get Denied by the State Workforce Agency?
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:
- How do I explain why we are asking new hires if they have received SNAP Benefits?
- Minimum number of hours an employee needs to work to be eligible for the Work Opportunity Tax Credit?
- Does WOTC Have a Limit to How Many WOTC Credits I Can Claim?
Submit your question for Brian here.
Understanding WOTC’s Target Groups: Designated Community Resident (DCR)
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 Designated Community Resident (DCR). 152,149 individuals were hired with certification from this group in 2022, 5.92% of the total.
A DCR is an individual who, on the hiring date:
- Is at least 18 years old and under 40 and
- Has a principal residence within one of the following:
- An Empowerment Zone (EZ) or
- A Rural Renewal County (RRC)
When determining the credit, wages do not include wages paid or incurred for services performed while the individual’s principal place of residence is outside an EZ or RRC.
Texas hired the most Designated Community Residents last year with 19,291 new hires qualifying under that target group. The maximum tax credit for hiring a qualified Designated Community Residents is $2,400.
Work Opportunity Tax Credit Statistics for Illinois
In 2022 the state of Illinois issued 136,729 Work Opportunity Tax Credit certifications. Illinois issued 5.32% of all WOTC Tax Credits in 2022, SNAP Recipient was Illinois’ highest tax credit target group with 71.96% of certifications for that category. See historical data on Illinois and the Work Opportunity Tax Credit.
#ICYMI
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The latest news on the Work Opportunity Tax Credit (WOTC) from Cost Management Services. Sign Up for the Work Opportunity Tax Credit (WOTC) Newsletter
Related: WOTC Newsletter Archive