How to File a WOTC Certification Request
To verify whether a job applicant is a first-time, qualifying member of a targeted group, employers are required to submit IRS Form 8850 together with ETA Form 9061 or ETA Form 9062 to the state workforce agency in which the employer’s business is located (where the employee works) within 28 calendar days after the new hire’s start date.
What is a WOTC Certification Request?
After a new hire joins your company, a business has 28 days to file a WOTC certification request. As an employer, you can submit IRS Form 8850 with either ETA Form 9062 or ETA Form 9061 to your state workforce agency. While each state has different procedures, the form will be the same.
Once you turn in the form, the state will determine whether the employee is eligible for the WOTC or not. Then, you can use the state’s determination to apply for the WOTC when you file your annual tax return.
Submitting a WOTC Certification Request
The entire process for submitting a WOTC certification request is straightforward. There are few steps that your business should complete to make sure you are able to claim WOTC credit when your business files taxes.
- Identify WOTC-Eligible Workers: The first step is to make sure you hire g someone who is eligible for the WOTC.
- Screen Your Applicants: When people apply for a potential position, ask them to fill out the questionnaire on the initial page of Form 8850. Because some of these questions may indicate protected classes, you may want to outsource the pre-screening process to a third party provider like Tax Credit Group. This screening is entirely voluntary, so it’s important to make sure applicants and hiring managers know that no one is required to fill it out.
- Submit Form 8850: Form 8850 is also known as the Pre-Screening Notice and Certification Request for the WOTC. You must submit this form within 28 days of when you hired the WOTC-eligible worker. You must also submit ETA Form 9061 or 9062 at the same time.
- Track Work Hours: To qualify for the WOTC, the employee must work a minimum number of hours. Typically, the worker must perform at least 400 hours of services to qualify for a 40% credit.
- Get Your Credit: Once you have completed the rest of the process, you can file Form 5884 to get your credit when you file the rest of your tax return.
Resources
IRS Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit, available at: https://www.irs.gov/forms-pubs/about-form-8850 ; AND
ETA Form 9061 (OR) ETA Form 9062 must be completed and submitted to the state workforce agency to complete the application. Note: The Spanish – ETA Form 9061 is available for translation purposes only.
Additional forms may be required for certain targeted groups, as noted below:
ETA Form 9175 is a Self-Attestation Form (SAF) completed by job applicants of the Qualified Long-Term Unemployment Recipient (LTUR) targeted group, only.
Submission instructions can be found on your state workforce agency’s website. See the state workforce agency directory for additional information at: https://www.dol.gov/agencies/eta/wotc/contact/state-workforce-agencies.
Do not send application forms to the U.S. Department of Labor, or any other federal agency.
