Colorado Department of Labor and Employment

Transcription

1 Colorado Department of Labor and Employment Workforce Programs Work Opportunity Tax Credit th Street, Suite 700 Denver, Colorado

2 Agenda Work Opportunity Tax Credit Definition Filing Electronically Description of Target Groups Common Errors to Avoid Contact Information Questions

3 What is the Work Opportunity Tax Credit(WOTC) Program? WOTC is a federal income tax credit that assists individuals in specified target groups consisting of hard to employ populations. WOTC can reduce employer federal tax liability by as much as $9,600 per new hire.

4 What are the WOTC Target Groups? Category A: Welfare Recipients Category B: Veterans Tiered Category C: Ex Felons Category D: Designated Community Residents Category E: Vocational Rehabilitation Recipients Category G: Food Stamp Recipients Category H: Supplemental Security Income Recipients Category I: Long Term TANF Recipients

5 Collaborating Agencies Department of Veterans Affairs Department of Human Services Department of Vocational Rehabilitation Agency Department of Corrections Out-of State Verification

6 To Apply Online

7 Hello Hello rudy rudy Rudy

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10 IRS 8850 and ETA 9061 Forms

11 What to do with these forms? File within 28 days of Employment Send the form to: Colorado Department of Labor and Employment WOTC Unit th Street, Suite 700 Denver, CO OR Fax: Scan or

12 Category A Welfare Recipients Any individual who has received financial benefits under the TANF(Temporary Aid to Needy Families) program. The employee must have received at least 9 months of benefits within an 18 month period. This amount of the tax credit is 40% of qualified wages for employees working 400 or more hours: or 25% of qualified wages for employees working 120 to 399 hours during the first year of employment. Maximum Tax Credit is $2,400 per qualifying employee.

13 Category B Veteran This is a tiered category Category B-Veterans receiving Food Stamps Veterans who are members of a family that received food stamps for at least three consecutive months during the 15 month prior to the date of hire. Maximum tax credit is $2,400 per qualifying employee.

14 Category B Disabled Veteran A veteran who is certified as entitled to compensation for a service-connected disability of at least 10%. Qualified first-year wages for this category are $12,000. Maximum tax credit is $4,800 per qualifying employee. A veteran with a service- connected disability of at least 10% who has been unemployed for at least 6 months. Qualified first-year wages for this category are capped at $24,000 Maximum tax credit is $9,600 per qualifying employee.

15 Category B Veterans Vow to Hire Heroes Act of 2011 Expanded Veterans The Veteran should have been hired on or after November 22, 2011 A Veteran receiving unemployment insurance benefits for at least 4 weeks during the one-year period ending on the hire date. OR A Veteran receiving unemployment insurance benefits for a least 6 months during the one-year period ending on the hiring date.

16 Category C Ex Felon An individual who has been convicted of a felony and has been released from incarceration within the previous 12 months from the date of hire Maximum tax credit is $2,400 per qualifying employee

17 Category D Designated Community Residents An individual that has attained the age of 18 but not 40 on the hire date and his/her principal place of abode is within a Rural Renewal County (RRC). Colorado has three such counties: Cheyenne County Kiowa County San Juan County Maximum tax credit is $2,400 per qualifying employee.

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19 Category E Vocational Rehabilitation Recipient Any person who is currently receiving rehabilitative services, or has completed services within 2 years of the hire date. Also applies to Veterans receiving services form the Department of Veterans Affairs. Maximum tax credit is $2,400 per qualifying employees.

20 Category G Food Stamps Recipients Any individual who is 18 thru 39 years old and is a member of a family that is receiving Food Stamps. The recipient must have received 6 continuous months of benefits dating back from the hire date. Maximum tax credit is $2,400 per qualifying employee.

21 Category H Supplemental Security Income Recipients The is a Federal income supplement program funded by general tax revenues(ssi) Individual who received SSI benefits for any month during the 60 days prior to date of hire. Maximum tax credit is $2,400 per qualifying employee.

22 Category I Long Term TANF Recipients A member of a family that received TANF for at least 18 consecutive months ending on the hire date. Maximum tax credit is $9,000 per qualifying employee (40% of qualified wages for the first year of employment and 50% of qualified wages for the second year of employment). New hires must be employed for at least 120 hours to qualify for the tax credit.

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24 Employer Certification Form

25 Common Errors to Avoid Incorrect social security number Employee did not sign and date the written 8850 form The four required dates on the 8850 are blank. The application is received beyond the 28 day postmark requirement

26 Colorado WOTC Unit Shirley Dixon Frances Pineda Link: Fax number:

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