Work Opportunity Tax Credit

Can be used in conjunction with WOTC for an added tax credit. How the refundable tax credit works:

• Can be applied against certain employment taxes equal to 50 percent of the qualified wages paid by an eligible employer after March 12, 2020, and before January 1, 2021.
• Can also be applied against 70 percent of qualified wages paid by an eligible employer after December 31, 2020, and before January 1, 2022.
• Eligible employers can get immediate access to the credit by reducing employment tax deposits they are otherwise required to make.
• The same wages cannot be used to calculate the WOTC and the ERC.
• For more information, go to IRS.gov.

Covers job seekers who are considered high-risk due to factors in their personal backgrounds and who have been rejected by a commercial bonding company. It protects employers from any loss of money or property incurred as a result of dishonesty by high-risk workers.

• Created to assist high-risk, but qualified, job seekers who have bona fide offers of employment.
• Employers can bond job seekers who are facing barriers to employment for the first six months on the job.
• Typically, some employers may view ex-offenders, former substance abusers, and other individuals who have questionable backgrounds as high-risk and potentially untrustworthy workers.
• For more information, go to MiTalent.org/Bonding.

• List the employer's name, address and Federal Employer Identification Number (FEIN) on any correspondence.
• Employers using employer representatives to process their tax requests, may not have their certifications mailed to the employer representative until either a notarized original or notarized copy of the Power of Attorney is on file with UIA's WOTC Unit.
• Upon receipt of the certification notice, the employer is responsible for employing the worker the required number of hours. IRS Form 5884, Work Opportunity Credit, is filed with your federal tax returns. It is available through the IRS website or by calling the IRS toll-free at 1-800-829-1040.

• ETA Form 9061: Individual Characteristics Form
• IRS Form 8850: Pre-Screening Notice and Certification Request for WOTC
• ETA Form 9198: Employer Representative Declaration Form
• UIA 1061: Veteran Authorization for Release of Information to the WOTC Program
• Desk Aid: WOTC Eligibility Desk Aid