Tips to Maximize WOTC Participation and Increase Savings

With 25 years of experience in Work Opportunity Tax Credit screening and processing, we would like to offer you some tips to make sure you get the maximum tax credit available in 2022.

 

Military Spouse Bill Could Expand Work Opportunity Tax Credit’s Target Groups

Senator Tim Kaine D-VA, is leading a bipartisan group introducing a bill to add Military Spouses to the Work Opportunity Tax Credit target groups. The “Military Spouse Hiring Act” (S.3909 – A bill to amend the Internal Revenue Code of 1986 to make employers of spouses of military personnel eligible for the work opportunity credit), was introduced to the Senate Finance on March 23rd.

 

Where to post job openings to attract Veterans

According to Monster.com 90% of veterans say finding a veteran-friendly company is critical in their job search. And when you are using the Work Opportunity Tax Credit, you may also be eligible for a tax credit of up to $9,600.

 

WOTC Wednesday: Is there a limit to how many Work Opportunity Tax Credits I can claim each year?

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:

• Can We Go Paperless with the Work Opportunity Tax Credit Screening Process?
• Is WOTC Available for Part Time Employees?
• How Long Does It Take To Receive WOTC Tax Credit Certifications?

 

Understanding WOTC’s Target Groups: Summer Youth Employee

New hires who fall under one or more of WOTC’s Target Groups may make you eligible for a WOTC Tax Credit. Target Group #6 is the Summer Youth Employee. 1,561 individuals were hired with certification from this group in 2021, 0.07% of the total, making it the lowest overall certified category.

A “qualified summer youth employee” is one who:

• Is at least 16 years old, but under 18 on the date of hire or on May 1, whichever is later, AND
• Is only employed between May 1 and September 15 (was not employed prior to May 1) AND
• Resides in an Empowerment Zone (EZ), enterprise community or renewal community.

The maximum tax credit available for hiring a Summer Youth Employee is $1,200. Texas hired the most Summer Youth Employees last year, at 488.

 

Work Opportunity Tax Credit Statistics for Minnesota

In 2021 the state of Minnesota issued 32,259 Work Opportunity Tax Credit certifications. The land of 10,000 Lakes issued 1.55% of all WOTC Tax Credits in 2021, Designated Community Resident was Minnesota’s highest tax credit category with 33.89% of certifications for that target group.

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