Reward$ and In¢entive$ For Your Business NC DEPARTMENT OF COMMERCE DIVISION OF WORKFORCE SOLUTIONS BUSINESS SERVICES UNIT VIRGINIA TERRELL – PROGRAM MANAGER 1 What is WOTC A Federal Tax Credit program available to employers who hire new employees from various Congress determined “target groups” which have historically had difficulty in obtaining and retaining employment (two of the target groups are not available in North Carolina). 2 TARGET GROUPS • Veterans receiving Supplemental Nutrition Assistance • Veterans with a ServiceConnected Disability • Veterans with a ServiceConnected Disability unemployed at least 6 months • Veterans unemployed at least 4 weeks • Veterans unemployed at least 6 months • TANF Recipients • Ex-Felons • Designated Community Residents • Vocational Rehabilitation Recipients • Summer Youths • SNAP Recipients • Supplemental Security Income Recipients (SSI) • Long-Term Welfare Recipients 3 Program status • WOTC expired on 12/31/2013 • NCWorks WOTC Online Program has been named and is currently under construction and will be coming soon. 4 What Are The Benefits? • Standard Benefits • $2,400 • 40% of the first $6,000 in qualified wages if the employee is retained at least 400 hours • $1,500 • 25% of the first $6,000 in qualified wages if the employee is retained between 120 and 399 hours 5 What Are The Benefits? • Additional Benefits • $4,800 • 40% of the first $12,000 in qualified wages if the employee is a veteran with a service connected disability • $9,600 • 40% of the first $24,000 in qualified wages if the employee is a veteran with a service connected disability and unemployed at least six months 6 What Are The Benefits? • Additional Benefits • $5,600 • 40% of the first $14,000 in qualified wages if the employee is a veteran unemployed for at least six months • $9,000 • Over two years if the employee is a longterm welfare recipient ($4,000 first year, $5,000 second year) 7 How to Screen for WOTC • Two Forms Required • Job applicants complete IRS form 8850 (Pre-Screening Notice) • ETA-9061 (Individual Characteristics Form) must also be completed for employees that check yes to any questions on the 8850 • The employer mails documents to DWS postmarked no later than the 28th day after the employment start date. 8 Form 8850 is required. Job applicants must complete Page 1. Job applicants must check every box that applies to them. Do not forget to sign this form. Employers must complete Page 2. All items highlighted in yellow are REQUIRED. The Individual Characteristics Form is to be completed by the applicant and is also REQUIRED. The applicant must select at least one of the target groups listed in questions 1322 for their submission to be considered. Question #8 is often overlooked but is REQUIRED. Do not forget to sign this form. CONTACT INFORMATION • Virginia Terrell Program Manager • NC Department of Commerce • Division of Workforce Solutions • Business Services Unit 4316 Mail Service Center Raleigh, NC 27699-4316 [email protected] 919-814-0439 13