How to Apply for the Work Opportunity Tax Credit
By participating in the WOTC Program, Employers:
- Hire Individuals
- Complete minimal paperwork to claim the credits
- Can apply for the credit as many times, there is no limit to the number of new hires who can qualify an employer for the savings
Applying for Work Opportunity Tax Credit Certification Takes Three Simple Steps:
Employers must request and receive certification from their "State Workforce Agency" (SWA) that the new hire is a member of one of the WOTC target groups before they can claim the Work Opportunity Tax Credit on their federal tax return.
To apply for certification, employers must:
- Complete the IRS Form 8850, "Prescreening Notice and Certifications Requests for the Work Opportunity Tax Credits," by having the new qualified employee fill out page 1 prior to the date of the job offer and the employer complete page 2;
- Complete one of the following one-page U.S. Department of Labor forms, as appropriate:
- IRS Form 9061, "Individual Characteristics Form," or,
- IRS Form 9062, "Conditional Certification Form, "if provided to the job seeker by a participating agency, such as the Vocational Rehabilitation agencies or the SWA's
- Mail the completed and signed IRS and ETA forms, as well as the supporting documentation; to the employer's state workforce agency (we must receive the original 8850 form). We must receive the 8850 and 9061 within 28 days of the start date (based on postmark date)– supporting documentation can be sent at a later date, however it is important for the employer to collect necessary documentation from the individual at the time of hire.
In Delaware, the address is:
Department of Labor
Division of Employment and Training
Work Opportunity Tax Credit (WOTC) Unit
4425 North Market Street, 3rd Floor
Wilmington, DE 19802
Forms are available from the following website:
Who Would Not Qualify
- Tax credit cannot be claimed for wages paid to relatives, majority owners or dependents,
- Tax credit cannot be claimed for federally subsidized on-the-job-training. However, wages paid after the subsidy expires can qualify for the credits.
- Any individual who previously worked for the employer.
Why use it?
- Helps reduce costs and assist you with your new hires
- Benefits employers for hiring employees with economic challenges and barriers
- Assists in the development of a high performance, motivated workplace