The Work Opportunity Tax Credit (WOTC) is a federal credit available to employers who hire and employ qualified veterans, qualified ex-felons and other individuals from certain targeted groups who have faced barriers to finding employment.
What must an employer do to claim the WOTC?
The employer and the job applicant must complete Form 8850 (Pre-Screening Notice and Certification Request for the Work Opportunity Credit) on or before the day that a job offer is made. The employer must submit Form 8850 to the designated local agency located in the state in which the business is located within 28 calendar days from the new employee's start date.
How does an employer claim the WOTC?
Within the program, this credit can be claimed using the following path:
- Federal
- Deductions
- Credits
- Less Common Credits
- Work Opportunity Credit