CMS Work Opportunity Tax Credit Newsletter June 2024

In this issue:

• WOTC Wednesday: How are Work Opportunity Tax Credits Calculated?
• Understanding the Work Opportunity Tax Credit’s Target Groups: SSI Recipient
• Work Opportunity Tax Credit Statistics for Michigan 2023
• Work Opportunity Tax Credit Statistics 2023
• #ICYMI

 

WOTC Wednesday: How are Work Opportunity Tax Credits Calculated?

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:

• Why Use a WOTC Screening Service Instead of Doing It Yourself
• Are rehires eligible for Work Opportunity Tax Credits?
• Can I Integrate the WOTC Program with my Employee Onboarding Software?

 

Understanding the Work Opportunity Tax Credit’s Target Groups: SSI 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 SSI Recipient. 62,472 individuals were hired with certification from this group in 2023, 3.14% of the total.

A “qualified SSI recipient” is an individual who received SSI benefits for any month ending within the 60-day period that ends on the hire date.

The maximum tax credit available for hiring a Qualified SSI Recipient is $2,400.

Work Opportunity Tax Credit Statistics Michigan 2023

In 2023 the state of Michigan issued 83,775 Work Opportunity Tax Credit certifications. Michigan issued 4.22% of all WOTC Tax Credits in 2023, SNAP Recipient was Michigan’s highest tax credit target group with 77.42% of certifications for that category. See historical data on Michigan 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.