The Work Opportunity Tax Credit (WOTC) is one tool in a diverse toolbox of
flexible strategies designed to help move people into gainful employment and obtain on-the-job experience. It joins
other tax credits, education, and workforce training and development programs that help American workers with
barriers to employment prepare for good jobs; case their transition from job to job; benefit from the creation of
effective regional economic development strategies; and create high performance workplaces. All new adult employees
must work a minimum of 120 or 400 hours; Summer Youth must work at least 90 days, between May 1 and September 15
before the employer is eligible to claim the tax credit. The original, current, ETA form 9061 and the IRS form 8850
with original signatures must be completed and submitted with a postmark date no later than 28 days after the start date,
to the Louisiana Workforce Commission - WOTC Unit, P. O. Box 94094 Baton Rouge, LA, 70804. Employer is required to
keep copies of application and obtain and retain proof of mailing. Electronic signature is acceptable for either
employer or employee, but not both on one application. The new employee must belong to one of the nine target groups
listed below:
* The use of this web system is not mandatory.
UPDATES
News for Employers & Consultants
Update: October 31, 2023
There has been a change of forms for employers to authorize consultants/individuals to represent their organization for WOTC purposes.
Employers were authorized to use the IRS Form 2848. Power of Attorney and Declaration of Representatives, for an employers’ authorized business representative and its applicability through WOTC.
Employment and Training Administration (ETA) has developed the ETA Form 9198, Employer Representative Declaration Form, for employers to authorize a
representative(s) to facilitate the WOTC certification request to process on their behalf.
ETA Form 9198 will replace the use of IRS Form 2498 for employers to authorize representation under WOTC, effective May 31, 2024. Employers are allowed to use IRS Form 2848 until May 31, 2024.
After that date ETA Form 9198 must be used to declare new employer representation under WOTC.
Please let us know if you have any questions or concerns about the form change process by email wotc@lwc.la.gov.
Update: April 23, 2020
The Department of the Treasury and the Internal Revenue Service (IRS) recently issued Notice 2020-23.
In addition to other relief, the notice extends the due date for certain time sensitive acts specified in Revenue Procedure 2018-58,
2018-50 IRB 990. Under the notice, a time sensitive act due to be performed on or after April 1, 2020, and before
July 15, 2020, can be performed by July 15, 2020. This includes the requirement, for an employer seeking to qualify
to claim the Work Opportunity Credit, to send IRS Form 8850 to a State Workforce Agency no later than 28 days after
an individual begins working for the employer. As a result, under the notice, employers that otherwise would be
required to submit IRS Form 8850 to a State Workforce Agency on or after April 1, 2020,
and before July 15, 2020, have until July 15, 2020 to submit IRS Form 8850. Please continue to submit applications normally via the
online system or via mail.
1. WOTC Target Groups
- A. IV-A (TANF) Recipient
- A member of a family that is receiving or recently received Temporary Assistance to Needy
Families (TANF), or benefits under a successor program for any 9 months during the 18-month
period ending on the hire date. The Louisiana Workforce Commission WOTC Unit is currently
able to verify this information.
- B. Veteran
- A veteran who is a member of a family that is receiving or recently received Food Stamps
for at least a 3-month period during the past 15 months; and for individuals who begin to
work for an employer after May 25, 2007, the veteran group is expanded to include "disabled
veterans" who are entitled to compensation for a service-connected disability and who, during
the one-year ending on the hiring date, were: a) discharged or released from active duty in
the U.S Armed Forces, or b) unemployed for a period or periods totaling at least 6 months.
The first-year wages taken into account for these "disabled veterans" are capped at $12,000.
A copy of the applicant's DD-214 or Official Discharge Papers that contain the dates and
proof of military service and a service connected disability (if applicable) is required to
certify the applicant for this target group.
Qualified Veteran has five certifications with different allowable tax credits:
| Veterans receiving SNAP benefits | | $2400.00 |
| Disabled Veterans hired within one year after active duty | | $4800.00 |
| Disabled Veterans unemployed for 6 months prior to hire date | | $9600.00 |
| Veterans unemployed for 4 weeks prior to hire date | | $2400.00 |
| Veterans unemployed for 6 months prior to hire date | | $5600.00 |
- C. Ex-Felon
- An ex-felon is an individual who has been convicted of a felony under any statute of the
United States or any state; and has a hire date which is not more than one (1) year after
the last date on which the applicant was so convicted or was released from prison or is a
convicted felon who is participating in a pre-release program. The Louisiana Workforce
Commission can access information for individuals who have been sentenced to a prison term
as a result of a felony conviction by a parish judge in Louisiana. If the conviction was
committed in a state other than Louisiana, documentation of that conviction, including
the date of conviction/release must be submitted with the application.
- D. Empowerment Zone/Enterprise Community/Rural Renewal County (EZ/EC/RRC)
- An 18-39 year old resident of one of the federally designated Empowerment Zone (EZ),
Enterprise Communities (EC) or Rural Renewal County (RRC) or Rural Renewal Empowerment Zone.
To check the address status, log on to:
http://egis.hud.gov/ezrclocator/.
Rural Renewal Parishes can be found on-line by visiting the following Web site at:
https://www.usps.com/. The designated
Rural Renewal Community Parishes in Louisiana are:
Bienville, Claiborne, Franklin, Jackson, Morehouse, St. Mary, Tensas, Vernon, and Webster.
The following documentation should be included with the certification request:
a) Proof of Age (a copy of the employee's driver's license or birth certificate
b) Proof of Address (a copy of the IRS W-4, utility bill or similar mailing, showing an address in an Empowerment Zone, Enterprise Community, Renewal Community or Rural Renewal Community). The address on the IRS 8850 and the proof of address documentation must match.
- E. Vocational Rehabilitation Referral
- Applicant has a physical or mental disability which results in a substantial handicap to
employment; and was referred to the employer upon completion of, or while receiving,
rehabilitative services pursuant to an individualized written plan of employment (IWPE)
under a state plan for vocational rehabilitation services approved under the Rehabilitation
Act of 1973 (as amended, 1 998), a vocational rehabilitation program for veterans or an
employment network under the Ticket to Work program. Proof of participation in any of these
programs is required.
THE FOLLOWING TARGET GROUP EXPIRED EFFECTIVE 12/31/2016
- F. Summer Youth
- A 16-17 year old RRC (rural renewal county) resident hired between May 1st and September 15th
as a Summer Youth employee. The following documentation should be included with the
certification request:
a) Proof of Age (a copy of the employee's driver's license or birth certificate
b) Proof of Address (a copy of the IRS W-4, utility bill or similar mailing, showing an address in a rural renewal county (RRC). The address on the IRS 8850 and the proof of address documentation must match.
To check the address status, log on to:
http://egis.hud.gov/ezrclocator/.
Rural Renewal Parishes can be found on-line by visiting the following Web site at:
https://www.usps.com/. The designated Rural
Renewal Community Parishes in Louisiana are:
Bienville, Claiborne, Franklin, Jackson, Morehouse, St. Mary, Tensas, Vernon, and Webster.
G. Supplemental Nutritional Assistance Program Recipient
A member of a family that is receiving or recently received SNAP benefits (Food Stamps), and
is at least 18, but not yet 40 years old, on the hire date, Individual is a member of a
family receiving assistance under a food stamp program for the 6-month period ending on the
hire date; or receiving such assistance for at least 3 months of the 5-month period ending on
the hire date. The Louisiana Workforce Commission can verify this information.
H. Supplemental Security Income (SSI) Recipient
An individual receiving Supplemental Security Income (SSI) benefits for any month ending
within the 60 day period ending on the hire date. Proof of benefits must be attached to the
certification request.
I. Long-Term Family Assistance Recipient
An individual who is a member of a family that received Temporary Assistance to Needy
Families (TANF) or benefits under a successor program for at least 18 consecutive months ending
on the hire date; or has received family assistance for a total of at least 18 months (whether
or not consecutive) beginning after August 5, 1997 and has a hire date that is not more than two
(2) years after the end of the earliest 18-month period; or whose TANF eligibility expired under
a federal or state law after August 5, 1997, and who was hired within two years after their
eligibility expired. The Louisiana Workforce Commission can verify this information if benefits
were received in Louisiana.
THE FOLLOWING TWO TARGET GROUPS HAVE EXPIRED EFFECTIVE 12/31/2010
- J. Unemployed Veterans
- The Veteran was discharged on/after September 1, 2001, but prior to December 31, 2010; and the
Veteran has received unemployment compensation for at least 4 or more weeks within a year from
the hire date. A copy of the applicant's DD-214 or Official Discharge Papers that contain the
dates and proof of military service and a service connected disability (if applicable) is
required to certify the applicant for this target group.
- K. Disconnected Youth
- An individual who is at least 16, but not yet 25 on the hire date and;
- Is not regularly attending a secondary, technical, or post-secondary school during the 6
months prior to the hire date and;
- Is not regularly employed during the 6 months prior to the hire date and;
- Is not readily employable by reason of lacking a sufficient number of basic skills.
The following documentation should be included with the certification request:
a) Proof of Age (a copy of the employee's
driver's license or birth certificate and proof or a self attestation document signed by the
applicant or if under age 18, signed by the parent or guardian stating that the applicant was
not attending a secondary, technical or post-secondary school during the 6 months prior to hire
date and that he or she is not readily employable by reason of lack a sufficient number of basic
skills.
- L. Long-Term Unemployment Recipient
- Qualified long-term unemployment recipient is any individual who on the day before the
individual begins work, or, if earlier, the day the individual completes the IRS Form
8850 as a prescreening notice in accordance with the certification provisions described
in §51(d)(13)(A)(ii) of the Code, is in a period of unemployment that is: (i) not less
than 27 consecutive weeks; and (ii) includes a period (which may be less than 27 weeks)
in which the individual received unemployment compensation under State or Federal law
(see IRS notice 2016-22). These new hires must begin work for an employer on or after
January 1, 2016 through December 31, 2019.
2. Benefits to Employers
The Certification Request (IRS Form 8850) and the Individual Characteristic Form (ETA 9061) with
original signatures should be mailed to: LWC - WOTC Processing Unit, P.O. Box 94094, Baton Rouge,
LA 70804 or submitted online, no later than 28 days after the start date. The Employer or their Consultant will receive
Denial or Certification notices once the request has been processed. All certification notices will
denote which target group the applicant was certified by listing the corresponding alphabetic letter
(A through I) for that target group as noted above.
For target groups not identified below, the tax credit is based on qualified wages paid to the
employee for the first year of employment. Qualified wages are capped at $6,000. The credit is 25%
($1,500) of qualified first-year wages for those employed at least 120 hours but fewer than 400 hours
and 40% ($2,400) for those employed 400 hours or more. I he IRS Form 8850 and the ETA Form 9061 must
be completed and mail to the WOTC Processing Unit within 28 days of the employees start date.
Summer youth employees. Wages are capped at $3,000 ($1 200 tax
credit) for 16- and 17-year-olds working for a 90-day period between May 1 and September 15.
Disabled Veteran employees. Qualified wages for Disabled
Veterans only is based on the first $12,000 in wages A 25% ($3,000) credit for workers who work at
least 120 hours but less than 400 hours, and A 40% credit for workers who work at least 400 hours for
a maximum credit of $4,800.
Long-term TANF recipients. Wages are capped at $10,000 ($4,000
tax credit for the first year). Ihe WOTC is also available for the employee's qualified second-year
wages, also capped at $10,000. The credit is 50% ($5,000) of qualified wages for the second year of
employment.
Ineligible For The Work Opportunity Tax Credit:
- Employers not covered by FUTA
- Relatives of the employer
- Non-qualifying rehires
- Federally subsidized on-the-job training positions
3. Forms
4. Apply for the WOTC Program
Electronic WOTC (e-WOTC) is a paperless alternative to the traditional WOTC application process.
Louisiana’s new e-WOTC process eliminates mailing paper documents to and from the Department of Economic Opportunity.
Employers must first request an e-WOTC account by completing the online e-WOTC Account Request form.
Apply now.
5. More WOTC Program Information
Learn more about the WOTC program, eligibility requirements and documentation guidelines through the
following resources.
6. Eligibility Determinations for Qualified Long-Term Unemployment Recipient
A qualified long-term unemployment recipient is any individual who on the day before the individual
begins work, or, if earlier, the day the individual completes the IRS Form 8850 as a prescreening
notice in accordance with the certification provisions described in §51(d)(13)(A)(ii) of the Code,
is in a period of unemployment that is: (i) not less than 27 consecutive weeks; and (ii) includes
a period (which may be less than 27 weeks) in which the individual received unemployment compensation
under State or Federal law (see
IRS Notice 2016-22).
The Work Opportunity Tax Credit Program reduces an employer’s cost of doing business and requires little paperwork.
The success and growth of this income tax credit for private-sector businesses depends on a strong public- and
private-sector partnership. Helping those in need find and retain good jobs and gain on-the-job experience benefits
all employers and increases America’s economic growth and productivity.
If you have any questions or need additional information, email us at
wotc@lwc.la.gov,
call (225)342-7679, or fax us at (225)342-3282.