Hiring Incentives For Employers Worksheet - Work Opportunity Tax Credit (Wot)
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2Hiring Incentives for Employers Worksheet
Work Opportunity Tax Credit (WOT)
This is a wage credit for up to $2,400 against Federal taxes for businesses who hire
Zone residents with special employment needs, including high-risk youth, veterans, ex-
felons, vocational rehabilitation referrals, summer youth employees, food stamp
recipients, TAFDC/TANF recipients, or SSI recipients. Businesses do not have to be
located in the Zone to qualify for this credit which is available for any full- or part-time
employee who works at least 120 hours for the business. IRS Form 8850 must be
forwarded to the Commonwealth’s Division of Career Services within 21 days of the
employee starting work. Click here to view
IRS Publication
954,
IRS Form 5884 &
Instructions
and for
Form 8850
& Instructions. For additional information and
assistance, visit
Massachusetts Division of Career
Services.
Quick Calculation:
___________
x _____________
x .40
= ______
# WOTC employees
Wage, up to
Credit
WOT
working at least 400
$6,000
Rate
Credit
hrs.
___________
x _____________
x .25
= ______
#WOTC employees
Wage, up to
Credit
WOT
working at least 120
$6,000
Rate
Credit
hrs.
Welfare to Work Wage Credit (WtW)
This is a federal tax credit of up to $8,500 over two years for each new employee who
has received family assistance or welfare for 18 months or more. Businesses seeking to
take advantage of this credit are encouraged to work closely with the Commonwealth’s
Division of Career Services for assistance in hiring processes. New hires must work at
least 400 hours or 180 days (part-time or full-time) in order for the business to claim the
credit. Click here to view
IRS Publication
954,
IRS Form 8861 & Instructions
and for
Form 8850 &
Instructions. For further information or assistance also visit
Massachusetts
Division of Career
Services.
Quick Calculation:
___________
x ___________
x .35
= ______
WtW employees
Wage, up to
Credit
WtW
working 1 year
$10,000
Rate
Credit
___________
x ___________
x .50
= ______
WtW employees
Wage, up to
Credit
WtW
working 2 years
$10,000
Rate
Credit
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Instructions For Form Eta 9061 - Individual Characteristics Work Opportunity Tax Credit And Welfare-to-work Tax Credit - 2002
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Form Eta-9061 - Individual Characteristics Form Work Opportunity Tax Credit And Welfare-to-work Tax Credits 2004
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Parent category: Financial