Hire and Retain Qualified Individuals From Target Groups
The Work Opportunity Tax Credit (WOTC) is a federal tax credit available to employers for hiring and employing individuals from certain targeted groups who have faced significant barriers to employment. Taxable employers and qualified tax-exempt companies who hire someone that is a member of a WOTC target group can apply for a general business credit against their income tax.
Employers must pre-screen a job applicant, to determine that they are a member of a targeted group to claim the credit, on or before the day that a job offer is made. Plum Payroll Applicant Tracking System automatically determine the WOTC eligibility of Applicants. The Application Form includes pre-screening questions for Applicants to complete while applying for the job. Their responses are saved in their profile and determines whether they qualify for the WOTC Certification process if they are hired.
You have just 28 days from each hire date to file for the Work Opportunity Tax Credit. Plum Payroll Payroll integrates the WOTC Certification process into the New Hires onboarding process, so that employees and employers can complete their portion of the WOTC certification. Employers and New Hires who qualify for WOTC fill all applicable forms (Form 8850, 9061 & 9062), and provide supporting documents while onboarding. Plum Payroll Payroll electronically submits the completed forms to the State Workforce Agency, and tracks all submissions and certifications to keep you up to date.
After the required certifications are received, taxable employers claim the credit as a general business credit on Form 3800 against their income tax by filing the forms 5884 & 3800.
