CMS Work Opportunity Tax Credit Newsletter September 2024

In this issue:

• Tips to Maximize WOTC Participation and Increase Savings
• WOTC Wednesday: Are my rehires eligible for the Work Opportunity Tax Credit?
• Understanding the Work Opportunity Tax Credit’s Target Groups: Qualified IV-A Recipient
• Work Opportunity Tax Credit Statistics Pennsylvania 2023
• Work Opportunity Tax Credit Statistics 2023
• #ICYMI

 

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. On average the United States spends $5 Billion each year on this program. How much did you get?

 

WOTC Wednesday: Are my rehires eligible for the Work Opportunity Tax Credit?

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 WOTC Tax Credit Target Groups are there?
• Can I Integrate the WOTC Program with my Onboarding Software?
• How are Work Opportunity Tax Credits (WOTC) Calculated?

 

Understanding the Work Opportunity Tax Credit’s Target Groups: Qualified IV-A 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 #1 is the Qualified IV-A Recipient. 49,753 individuals were hired with certification from this group in 2023, 2.5% of the total.

A “qualified IV-A recipient” is an individual who is a member of a family receiving assistance under a state program funded under part A of title IV of the Social Security Act relating to Temporary Assistance for Needy Families (TANF). The assistance must be received for any 9 months during the 18-month period ending on the hiring date.

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

 

Work Opportunity Tax Credit Statistics Pennsylvania 2023

In 2023 the state of Pennsylvania issued 77,921 Work Opportunity Tax Credit certifications.

Pennsylvania issued 3.93% of all WOTC Tax Credits in 2023, SNAP Recipient was Pennsylvania’s highest tax credit target group with 79.13% of certifications for that category. See historical data on Pennsylvania 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.