Why 8850 Form Employment 2016-2024

What is WOTC? WOTC stands for the Work Opportunity Tax Credit. WOTC is money back for employers who hire individuals who face challenges in finding employment. If you hire an unemployed veteran, someone who has received food stamps, vocational rehabilitation, or faces other challenges in getting a job, you may be eligible for a WOTC tax credit. The tax credit ranges from $1,200 to $9,600 for each eligible hire. Applying for WOTC requires some paperwork but it is not overly complicated. To apply for WOTC, you need to send two forms to the Department of Labor in your state government, often called the State Workforce Agency. Once your WOTC application is certified by the State Workforce Agency, you can file with the IRS to claim the tax credit. To apply for WOTC, there are five steps to follow. The first step is pre-screening a job candidate and filling out IRS Form 8850. The job candidate fills out the first page, and you, as the employer, fill out page two. This form needs to be completed before or on the day the job offer is made. The second step involves filling out a second form from the US Department of Labor's Employment Training Administration (ETA). This form, ETA form 9061 or 9062, is filled out by either you or the job applicant. If the applicant already has ETA form 9062, it means an agency has conditionally certified them as eligible for WOTC. In this case, you only need to complete the employer's part of the form. In the third step, you send the two completed, signed, and dated forms to your State Workforce Agency within 28 days after the new employee starts working for you. Each state has different methods for form submission, so it's advisable to check your state's requirements on...