CMS WOTC Newsletter June 2020

In this issue:

CMS Adds Increased Integration for WOTC Tax Credit to iRecruit, Applicant Tracking Software
Work Opportunity Tax Credit By The Numbers 2019
EEOC Issues Formal Opinion on the Work Opportunity Tax Credit
Understanding WOTC’s Target Groups: Designated Community Resident
Work Opportunity Tax Credit Statistics for Illinois
WOTC Questions: How Do I Make Sure Employees Are Participating and Filling Out Their WOTC Forms?
Switch To Paperless WOTC Screening Today
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CMS Adds Increased Integration for WOTC Tax Credit to iRecruit, Applicant Tracking Software

We are pleased to announce that we have added increased Work Opportunity Tax Credit integration into iRecruit. The integration is immediately available for customers who use both iRecruit and CMS’s Work Opportunity Tax Credit Administration services.

Work Opportunity Tax Credit By The Numbers 2019

In 2019 there were 2,066,616 total Work Opportunity Tax Credits issued in the United States. CMS estimates the total value of these credits is $4.9 Billion. The number of credits issued in 2019 is down 6.3% from the previous year. SNAP (Food Stamps) dominated all target groups in 2019 with 65.01% of all qualified employees. Texas issued the most WOTC certifications in 2019.

EEOC Issues Formal Opinion on the Work Opportunity Tax Credit

The U.S. Equal Employment Opportunity Commission has released its first official opinion letter dated April 29, 2020, on the Federal Work Opportunity Tax Credit Form 8850. The letter confirms that employers can legally utilize the Work Opportunity Tax Credit without violating federal anti-discrimination laws.

Understanding WOTC’s Target Groups: Designated Community Resident

New hires who fall under one or more of WOTC’s Target Groups may make you eligible for a WOTC Tax Credit. Target Group #4 is the Designated Community Resident. A DCR is an individual who, on the date of hiring: Is at least 18 years old and under 40, Resides within one of the following: An Empowerment zone, an Enterprise community, a Renewal community, AND continues to reside at the locations after employment. How to Check if You are in an Empowerment Zone, Enterprise Zone, or Rural Renewal County

Work Opportunity Tax Credit Statistics for Illinois

In 2019 the state of Illinois issued 144,590 Work Opportunity Tax Credit certifications. Nationwide Illinois issued 6.99% of WOTC Tax Credits in 2019. Illinois was also one of four states that issued over 100,000 WOTC certifications. The SNAP target group was issued 117,755 certifications, 81.44% of the total.

WOTC Questions: How Do I Make Sure Employees Are Participating and Filling Out Their WOTC Forms?

CMS Says: The best way to improve or increase participation is to be consistent with your employees. Ask all new hires to complete the WOTC forms as part of your other new hire paperwork, I-9s, W-4s,State Tax Forms and other documents you need. From your WOTC account you can review the WOTC applications as they are submitted to make sure all new hires participate. Send reminders to those who have not submitted, and remember that you only have 28 days from date of hire/start date to submit the forms. With CMS’s new iRecruit integration, the WOTC survey is automatically delivered after the application.

Switch to Paperless WOTC Screening Today

CMS has been providing Work Opportunity Tax Credit screening services for over 20 years. We have helped save employers millions of dollars that can be reinvested back into their businesses. We highly encourage customers to take advantage of the online WOTC screening form that we developed or the call center, both of which provide several benefits to you.