ATTENTION: The Disconnected Youth target youth expired for any new hires AFTER Dec. 31, 2010. Currently, we are waiting on Congress to determine if it will continue beyond that deadline.  We will continue to accept but not process applications for this group until further notice.  If you have any questions, please contact the State Coordinator at 208-332-3570 x3318. Thank you.

The Work Opportunity Tax Credit (WOTC) is a federal income tax credit that encourages employers to hire specific targeted groups of job seekers. The WOTC is designed to help job seekers most in need of employment gain on-the-job experience and move towards economic self-sufficiency.

MINIMUM EMPLOYMENT OR RETENTION PERIOD

All new adult employees must work a minimum of 120 or 400 hours. The WOTC amount an employer may claim depends on the hours the employee works. WOTC applies to new hires only.

The consolidated WOTC for hiring most target group members can now be as much as:

•   $2,400 for each new adult hire; 
•   $4,800 for each new disabled veteran hire,
•   $6,000 for unemployed veterans, and
•   $9,000 for each new long-term family assistance recipient hired over a two-year period.
   

How does an Employer Participate in the WOTC Program? 

Two forms must be completed to apply for the Work Opportunity Tax Credit.

• The IRS Form 8850 (Prescreening Notice and Certification Request for the Work Opportunity Tax Credit) AND
• the ETA Form 9061 (Individual Characteristics Form).

Mail the original, signed IRS and ETA forms within 28 days of date of hire to:

Idaho Department Labor
Attn: WOTC
317 W. Main Street
Boise, ID 83735-0790

The new hire must belong to one of the following target groups:
 
Long-term TANF Recipient--A member of a family that: 

Received or recently received Temporary Assistance to Needy Families (TANF) payments for at least 18 consecutive months ending on the hiring date, OR received TANF payments for any 18 months (whether or not consecutive) beginning after August 5, 1997, and the earliest 18-month period beginning after August 5, 1997 ended during the past 2 years, OR stopped being eligible for TANF payments during the past 2 years because federal or state law limited the maximum time those payments could be made. 

Other TANF Recipient--members of a family that receivedTemporary Assistance for Needy Families (TANF) for a total of at least nine of the 18 months before date of hire (the nine months do not have to be consecutive months),

Food Stamp Recipients--18-39 year old members of a family that received food stamps for at least six consecutive months before their date of hire, OR for at least three of the five months before date of hire and their food stamp eligibility expired, who are able-bodied adults without dependents (ABAWD) and are no longer eligible due to not meeting the work requirement of the Food Stamp Act of 1977.

VETERANS--To be considered a veteran for any of the groups listed below, the applicant must have served on active duty (not including training) in the Armed Forces of the United States for more than 180 days or have been discharged or released from active duty for a service-connected disability.

Qualified 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.

Disabled Veterans--Those who are entitled to compensation for a service-connected disability AND have a hiring date which is not more than one year after having been discharged or released from active duty OR have aggregate periods of unemployment during the one-year period ending on the hiring date that equal or exceed six months.

Unemployed Veteran--A veteran hired after 2008 and before 2011 who: Has been discharged or released from active duty in the U.S. Armed Forces at any time during the 5-year period ending on the hiring date, and received unemployment compensation under state or federal law for at least 4 weeks during the 1-year period ending on the hiring date.

Vow to Hire Veteran Group--A veteran hired Nov. 22, 2011 through Dec. 31, 2012.

a) Veterans unemployed for at least 4 weeks
b) Veterans unemployed for at least 6 months
*Unemployment is based on receipt of unemployment insurance compensation

Vocational rehabilitation referrals--disabled persons who are employed within 2 years of their last date of service approved by a state or the U.S. Department of Veteran Affairs,

Ex-felons--individuals whose date of conviction or release is not more than 1 year prior to date of hire, or are currently enrolled in a work release program.

SSI Recipients -- individuals who received Supplemental Security Income benefits for any month during the 60 days before date of hire.

Disconnected Youth--An individual who is certified as: 1) having attained age 16 but not age 25 on the hiring date, 2) not regularly attending any secondary, technical, or post-secondary school during the 6-month period preceding the hiring date, 3) not regularly employed during such 6-month period, and 4) not readily employable by reason of lacking a sufficient number of basic skills.

There are 3 other target groups that do not apply to the State of Idaho. You can visit http://www.doleta.gov/business/incentives/opptax/ for those additional target groups and their information.

Employer's Rights Under the WOTC Program

In some circumstances the Department of Labor WOTC Unit must deny a request for a tax credit if there is missing information, if the forms are mailed after the 28-day time limit, or the WOTC eligibility criteria of the employee cannot be verified. The letter of denial will state the reason(s) for denial and may include instructions for a possible solution. The denial can be overturned with supporting evidence.

If the employee meets target group criteria and your firm has received a denial letter, it is your right to send a formal appeal to the Idaho Department of Labor, WOTC Unit to have the determination reviewed. If the review is negative and you still feel that you may be entitled to the tax credit, you then have the right to appeal to the U.S. Department of Labor regional office and/or the U.S. Department of Labor in Washington D. C.  The mailing addresses for these offices will be supplied upon request and will be included in the re-determination letter.