WORK OPPORTUNITY TAX CREDITS

$262,000,000 in Work Opportunity Tax Credits
will be earned in the US this year.*
*Estimate from Office of the Budget

On August 20, 1996 President Clinton signed into law The Small Business Protection Act of 1996. This legislation contained the Work Opportunity Tax Credit Program (WOTC), a federal program designed to encourage and reward employers who provide new employment opportunities to individuals within certain targeted groups:

Benefits of the WOTC

As an employer, you can earn up to a maximum of $2,400 for each qualified employee hired. WOTC is limited to 90 percent of an employer’s tax liability. Any unused credit may he carried hack for up to 3 years or carried forward for up to 15 years.

No changes arc required in your present hiring standards or procedures to claim these federal tax credits. New hires simply have to complete a Work Opportunity Credit Pre-Screening Notice’ and we do the rest.

The credit is claimed on IRS Form 5884, which is filed with your income tax return. CFG Associates provides all information and documentation for the completion of this form.

Take advantage of an insider's tax expertise!

CFG Associates handles all the administrative details of the WOTC program on your behalf. We conduct face-to-face interviews or telephone screenings with all potential WOTC applicants. Clear, written procedures guide your managers throughout the hiring process. Our staff trains your personnel to properly evaluate potential WOTC applicants’ qualifications. Our turn-key approach includes on-going consultation and support to keep you up to date with any changes in WOTC regulations and qualifications.

Click here to view/print a CFG Associates Tax Credit Questionnaire.

Click here to view/print IRS Form 8850 and here to view/print the instructions for completing the form.

Note that you must have Adobe Acrobat Reader installed to view/print these documents.