Work Opportunity Tax Credit

A Tax Credit Management Tool

For Employers Who Hire Those with Barriers to Employment

 

The Work Opportunity Tax Credit (WOTC) is a federal tax credit available to employers for hiring individuals from certain target groups who have faced significant barriers to employment. The WOTC module in Virtual OneStop manages the application process, including Power of Attorney, giving employers and Third Party Administrators (TPAs) the ability to register within the system to process their applications for tax credits.

Encouraging Employers to Provide Opportunity to Individuals From Targeted Groups

Simplifying the Tax Credit Application Process

For Employers, Staff, and Third Party Agents

 

The WOTC module has been designed to make the online tax credit process easy for all user groups that are involved. Agents have full access to the tools they need to represent employers and submit tax credit requests. Employers can also utilize the system to showcase their interest in hiring individuals from specified targeted groups so they can apply for the tax credit.

 

  • Application

    By completing the WOTC application online, employers or agents can work closely with the state workforce agency to make sure their application complies with deadlines and documentation requirements. The state will then issue a final determination for each WOTC application.

  • Third Party Administrators

    The WOTC module includes capability for TPAs to upload large numbers of 8850 and 9061 applications, as well as upload a list of all of their employer clients to streamline the application process. TPAs can also receive notifications on the status of an application or if further documentation is needed.

  • Verification Documents

    State workforce agencies can verify each employer and TPA, as well as receive alerts when verification documents are ready to be approved. Authorized staff have the ability to verify that TPAs have provided the appropriate Power of Attorney, as well as all of the required documents.

  • Target Group Categories

    The WOTC module is built to interface with other state systems to verify target groups. The system enables verification of the various tax credit categories. Authorized staff have the ability to edit or inactivate current target groups, as well as add new groups when necessary.

  • Job Order Wizard

    Employers can indicate their interest in hiring participants that are eligible for tax credits in their company profile. The system includes several fields in the job order wizard to inform potential applicants that an employer is looking to hire from a targeted group.

  • Customized Notifications and Alerts

    Agents and employers can receive custom alerts to address issues of missing data or documentation, letters to address ineligibility, and tax credit awards. Any special requests or determinations are sent to the appropriate party through the system’s message center.

  • Denying or Certifying a WOTC Application

    When staff are ready to deny a WOTC application, they can check one or more pre-populated denial options and add additional explanatory text if needed. When certifying an application, staff can send a notice to the employer, which the system generates automatically.

  • Reporting Capabilities

    The WOTC module allows for staff to run required reports, including the Summary Application Status, Employer and TPA reports, and WOTC tax credit awards by type. In addition, the system includes the ETA Form 9058, which is produced for federal reporting purposes.

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