Understanding WOTC’s Target Groups: Summer Youth Employee

The Work Opportunity Tax Credit, known as #WOTC, is a federal tax credit available to employers who hire individuals from disadvantaged groups of workers. Including WOTC Screening can save an employer significant amounts of money.

WOTC Screening is used to determine if a new hire is a member of one of the Work Opportunity Tax Credit’s ten target groups that would make the employer eligible to receive a tax credit for hiring the individual.

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 Summer Youth Employee. 211 individuals were hired with certification from this group in 2020, 0.01% of the total, making it the smallest certified category.

Summer Youth Employee

A “qualified summer youth employee” is one who:

  • Is at least 16 years old, but under 18 on the date of hire or on May 1, whichever is later, AND
  • Is only employed between May 1 and September 15 (was not employed prior to May 1) AND
  • Resides in an Empowerment Zone (EZ), enterprise community or renewal community.

The maximum tax credit available for hiring a Summer Youth Employee is $1,200.

See more about the Empowerment Zones, Enterprise Zones, Rural Renewal Counties, and drill down to your location using the map.

Contact CMS Today to Start Saving!

In 25 years of providing valuable WOTC Screening and Administration services we’ve saved millions for our customers.

Contact CMS today to start taking advantage. Call 800-517-9099, or click here to use our contact form to ask any questions.

 

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