CMS Work Opportunity Tax Credit Newsletter March 2024

In this issue:

• Expiring POA Forms
• Why Switch to a Paperless WOTC Screening Process in 2024
• How to Make WOTC a Part of Your Onboarding Process
• WOTC Wednesday: How are the Work Opportunity Tax Credits Calculated?
• Understanding the Work Opportunity Tax Credit’s Target Groups: Vocational Rehabilitation Referral / Ticket to Work
• Work Opportunity Tax Credit Statistics for Texas
• #ICYMI

 

Expiring POA Forms

If your Power of Attorney (POA) document for the Work Opportunity Tax Credit is expiring soon please keep screening. Don’t miss out on tax credits! Lisa and Sean will be reaching out to you to renew over the next few weeks with a new one. If you have any questions or concerns, please contact us at 800-517-9099.

 

Why Switch to a Paperless WOTC Screening Process in 2024

CMS’s online web link screening system screens your WOTC new hires with ease. There are several benefits to switching from paper to mobile friendly online screening.

 

How to Make WOTC a Part of Your Onboarding Process

Adding WOTC to your onboarding process with new hires is simple. We offer 3 easy ways to include WOTC as part of your new hire “paperwork,” you can use one option, or a combination of all three, depending on your needs.

 

WOTC Wednesday: How are the Work Opportunity Tax Credits Calculated?

CMS Responds: The Wo

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:

• How many Work Opportunity Tax Credit Target Groups are there?
• What is the Work Opportunity Tax Credit amount for hiring a SNAP Recipient?
• Is There a Minimum Wage for the Work Opportunity Tax Credit?

 

Understanding the Work Opportunity Tax Credit’s Target Groups: Vocational Rehabilitation Referral / Ticket to Work

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 Vocational Rehabilitation Referral. 23,962 individuals were hired with certification from this group in 2023, 1.2% of the total.

A “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.

This category is also combined with “Ticket to Work” or “Ticket Holder” which received 4,103 certifications in 2023.

The maximum tax credit available for hiring a qualified Vocational Rehabilitation Referral/Ticket to Work is $2,400.

Work Opportunity Tax Credit Statistics for Texas

In 2022 the state of Texas issued 192,950 Work Opportunity Tax Credit certifications. Texas issued 7.51% of all WOTC Tax Credits in 2022, SNAP Recipient was Texas’ highest tax credit target group with 59.68% of certifications for that category. See historical data on Texas and the Work Opportunity Tax Credit.