| The Work Opportunities Tax Credit (WOTC) is a Federal tax credit available to employers subject to Federal Income Tax Law who hire individuals with disabilities who have been served by VESID. The credit is bankable and may be used anytime within 15 years of the date it is earned. Details are as follows:
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The employer can claim 40% of all wages paid up to $6,000 for employees working 400 hours or more; or |
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The employer can claim 25% of all wages paid if the employee works for a minimum of 120 hours; |
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The maximum credit is $2,400 per employee; |
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The employer can claim the credit as long as the employee works for a minimum of 180 days or 400 hours. |
Employers use IRS Form 8850 WOTC Pre-Screening Notice and Certification Request to pre-screen applicants for the program and U.S. Department of Labor Form 9061 Individual Characteristics Form. The employer must request certification in writing for each employee. This is done by:
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Completing a WOTC Pre-Screening Notice on or before the day the job offer is made and mailing it to the New York State Department of Labor no later than 21 calendar days after the start work date; |
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Employers must also complete an Individual Characteristics Form and submit it with supporting documentation that the employee meets the program criteria. |
A member agency will be happy to discuss the process with any employer interested in learning more about this tax incentive. You may use the "E-mail Us" option to request assistance. Just be sure to include your name and provide a street address, phone number or E-mail address so someone may get back to you.
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