CMS Work Opportunity Tax Credit Newsletter December 2024

‘Tis the season! Happy Chanukah/Hanukkah, Merry Christmas, Happy Festivus, Happy Kwanzaa. We hope you have a safe and happy holiday season!

In this issue:

• CMS WOTC Screening Services
• CMS Pin Point WOTC Technology (CPPT)
• WOTC Wednesday: Can I Get a Report on How Many People Qualified for WOTC?
• Understanding the Work Opportunity Tax Credit’s Target Groups: Ex-Felon
• Work Opportunity Tax Credit Statistics Tennessee
• Work Opportunity Tax Credit Statistics
• #ICYMI

CMS WOTC Screening Services

Share this video with your colleagues, or anyone who needs to get up-to-speed on the Work Opportunity Tax Credit.

 

CMS Pin Point WOTC Technology (CPPT)

CMS’s Pin Point WOTC Technology (CPPT) performs a multi-step process to detect, identify and confirm new hires living in Federal Empowerment Zones and Rural Renewal Communities. CMS provides another technology tool designed to maximize the federal tax credit program for our clients.

 

WOTC Wednesday: Can I Get a Report on How Many People Qualified for WOTC?

CMS’s Brian Kelly answers your questions about the Work Opportunity Tax Credit in our weekly video Q&A series #WOTCWednesday. Follow us on our new TikTok.

Other Recent #WOTCWednesday Questions Answered:

• Does Your Software Check the Status of WOTC Applications?
• Is the WOTC Tax Credit Applicable for Part Time Employees?
• Why You Should Use a WOTC Screening Service Instead of Doing It Yourself

 

Understanding the Work Opportunity Tax Credit’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 #3 is the Qualified Ex-Felon. 66,054 individuals were hired with certification from this group in 2023, 3.32 % of the total.

A “qualified ex-felon” is a person hired within a year of:

• Being convicted of a felony or
• Being released from prison for the felony

The maximum tax credit available for hiring a Qualified Ex-Felon is $2,400.

 

Work Opportunity Tax Credit Statistics Tennessee

In 2023 the state of Tennessee issued 47,772 Work Opportunity Tax Credit certifications.

Tennessee issued 2.41% of all WOTC Tax Credits in 2023, SNAP Recipient was Tennessee’s highest tax credit target group with 74% of certifications for that category. See historical data on Tennessee and the Work Opportunity Tax Credit.

 

Work Opportunity Tax Credit Statistics 2023

The latest statistics for the Work Opportunity Tax Credit from 2023 have recently been released by the U.S. Department of Labor, and the data shows that a total of 1,988,528 total Work Opportunity Tax Credits were issued in the United States in 2023. This represents an almost 23% decrease over the previous year.