CMS Work Opportunity Tax Credit Newsletter July 2022

 

In this issue:

• WOTC In The News Roundup
• Why You Should Switch to a Paperless Screening Process
• Empowerment Zones, Enterprise Zones, Rural Renewal Counties Map
• Upcoming Webinar: Fast & Thorough Background Screening with Verified First
• WOTC Wednesday: How far back can we look back with WOTC?
• Understanding WOTC’s Target Groups: Vocational Rehabilitation Referral
• Work Opportunity Tax Credit Statistics for Virginia
• Make the Switch To Paperless WOTC Screening
• #ICYMI

 

WOTC In The News Roundup

This article provides a roundup of recent news stories related to the Work Opportunity Tax Credit.

• Fox 26 News reports that California’s EDD has backlog of 400,000 applications for grant money meant to help businesses, workers. California was one of 12 states that received a Department of Labor grant in 2020 to address the WOTC backlog.
• Rep. Don Beyer (D-VA) Assumes Sponsorship Of Bipartisan Military Spouse Hiring Act.

 

Why You Should Switch to a Paperless WOTC Screening Process

As CMS moves forward with our online presence it is very important for customers to keep your contact information current. If anyone at your company is taking on the implementation process of our services, please let us know or of any position changes.

 

Empowerment Zones, Enterprise Zones, Rural Renewal Counties Map

If your the employee lives in an Empowerment Zone, Enterprise Zone, or a Rural Renewal County and are between ages 18-39 you may be eligible for a WOTC Tax Credit. CMS’s online screening automatically includes an address check to determine if the employee resides in one of these zones. You can also check using CMS’s map on our website.

 

Upcoming Webinar: Fast & Thorough Background Screening with Verified First

We are pleased to invite you to a 45-minute webinar hosted by our partners, Verified First, on July 28th at 1:00 PM ET. They’ll explore how your organization can easily make recruiting and hiring decisions and how to avoid the bad ones. 

 

WOTC Wednesday: How far back can we look back with WOTC?

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:

• Are the Work Opportunity Tax Credit Forms Required?
• What IRS Tax Form is the WOTC Tax Credit Claimed On?
• Is the Summer Youth Category Still Around?

Submit your question for Brian here.

 

Understanding WOTC’s Target Groups: Vocational Rehabilitation Referral

New hires who fall under one or more of WOTC’s Target Groups may make you eligible for a WOTC Tax Credit. Target Group #7 is the Vocational Rehabilitation Referral. 31,815 individuals were hired with certification from this group in 2021, 1.53% of the total.

A qualified “Vocational Rehabilitation Referral” is a person who has a physical or mental disability and has been referred to the employer while receiving or upon completion of rehabilitative services pursuant to:

• A state plan approved under the Rehabilitation Act of 1973 OR
• An Employment Network Plan under the Ticket to Work program, OR
• A program carried out under the Department of Veteran Affairs.

The maximum tax credit available for hiring a Vocational Rehabilitation Referral is $2,400. Texas hired the most Vocational Rehabilitation Referrals last year, at 5,427. With 443, New York had the most Ticket To Work referrals.

 

Work Opportunity Tax Credit Statistics for Virginia

In 2021 the state of Virginia issued 58,800 Work Opportunity Tax Credit certifications. Virginia issued 2.82% of all WOTC Tax Credits in 2021, SNAP Recipient was Virginia’s highest tax credit category with 54.31% of certifications for that target group.

#ICYMI