CMS Work Opportunity Tax Credit Newsletter September 2023
In this issue:
- CMS Pin Point WOTC Technology (CPPT)
- IRS Encourages Employers to Take Advantage of Work Opportunity Tax Credit
- WOTC Wednesday: Can We Go Paperless with Work Opportunity Tax Credit Screening?
- Understanding the Work Opportunity Tax Credit’s Target Groups: Long-Term Family Assistance Recipient
- Work Opportunity Tax Credit Statistics for Iowa
- #ICYMI
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.
IRS Encourages Employers to Take Advantage of Work Opportunity Tax Credit
In a September news release the Internal Revenue Service reminds employers to check out a valuable tax credit available to them for hiring long-term unemployment recipients and other groups of workers facing significant barriers to employment.
WOTC Wednesday: Can We Go Paperless with Work Opportunity Tax Credit Screening?
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:
Submit your question for Brian here.
Understanding the Work Opportunity Tax Credit’s Target Groups: Long-Term Family Assistance 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 Long-Term Family Assistance Recipient (TANF). 80,428 individuals were hired with certification from this target group in 2022, 3.1% of the total.
A “long-term family assistance recipient” is an individual who, at the time of hiring, is a member of a family that meet one of the following conditions:
- Received assistance under an IV-A program for a minimum of the prior 18 consecutive months
- Received assistance under an IV-A program for a minimum 18-month period beginning after 8/5/1997 and it has not been more than 2 years since the end of the earliest of such 18-month period OR
- Ceased to be eligible for assistance under an IV-A program because a federal or state law limited the maximum time those payments could be made, and it has been not more than 2 years since the cessation of such assistance
California hired the most Long-Term Family Assistance Recipients last year with 15,119 new hires qualifying under that target group. The maximum tax credit available for hiring a Long-Term Family Assistance Recipient is $9,000 which is taken over two years.
In 2022 the state of Iowa issued 36,552 Work Opportunity Tax Credit certifications. Iowa issued 1.42% of WOTC Tax Credits in 2022. SNAP Recipient was Iowa’s highest tax credit target group with 49.33% of certifications for that category. See historical data on Iowa and the Work Opportunity Tax Credit.
#ICYMI
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- Your WOTC Dashboard
- New Spanish Language Option Available Online
- IRS Encourages Employers to Take Advantage of Work Opportunity Tax Credit
- EEOC Issues Formal Opinion on the Work Opportunity Tax Credit
- WOTC’s Target Groups
- Calculate your WOTC Savings
- Tips to Maximize WOTC Participation and Increase Savings
- The Work Opportunity Tax Credit (WOTC) Statistics 2022
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#WeKnowWOTC
The latest news on the Work Opportunity Tax Credit (WOTC) from Cost Management Services. Sign Up for the Work Opportunity Tax Credit (WOTC) Newsletter
Related: WOTC Newsletter Archive