Federal Tax Savings Program Benefiting Employers and Job Seekers
What is Work Opportunity Tax Credit?
The Work Opportunity Tax Credit (WOTC) is a federal income
tax benefit administered by the U.S. Department of Labor, for
private, for profit employers who hire from target populations.
WOTC reduces a business' federal tax liability, serving as an
incentive to select job candidates who may be somewhat
disadvantaged in their efforts to find employment.
How does the program help employers?
Hiring from a select group of qualified job seekers can mean
direct federal tax savings to your business ranging from
$1,200 to $9,600 per qualifying employee.
How do employers take advantage of
the tax savings?
1. Hire individuals from one or more of the identified
target groups. You don't have to know what group
your new-hire falls into, verification of eligibility will
be done by TWC.
2. Complete IRS Form 8850 (Prescreening Notice and Certification Request) and ETA Form 9061
(Individual Characteristics Form).
3. Or complete IRS Form 8850 and ETA Form 9062 (Conditional Certification Form) provided to
the job seeker by TWC or a participating agency.
Mail the two forms to:
Texas Workforce Commission
101 E. 15th St. Room 202T
Austin, Texas 78778-0001
Forms must be postmarked within 28 days of the employee's start date.
All forms and instructions are available for download on the TWC Web site: www.texasworkforce.org/wotc