Transform tax incentives into bottom-line savings
Federal, state and local tax credits can provide your organization with significant savings; yet taking advantage of them requires knowledge, time and perseverance. Tax Credit and Employer Services (TCES) can help.
Take advantage of federal, state and local tax incentives
Our longstanding private and government relationships, balanced with years of customer loyalty and satisfaction, serve as our foundation for providing the industry’s most effective tax credit and employer service solutions. Find out how we can maximize your organization's tax credit potential by handling the details and paperwork - enabling you to focus on running your business.
Work Opportunity Tax Credit (WOTC)
WOTC is a federal hiring incentive available to organizations that hire individuals from certain targeted groups that face significant barriers to employment, including veterans, individuals with disabilities and long-term welfare recipients. Hiring these individuals can earn you tax credits ranging from $2,400 to $9,600 per qualified individual. We help you navigate the process by screening candidates for eligibility and filing the paperwork on qualified hires, saving you time and money.Check out our WOTC Calculator
State Hiring Tax Credits
Many states offer their own hiring tax credits, targeting groups similar to those targeted by the federal program. Capitalizing on these state hiring tax credits gives you additional savings. Our experts help you navigate the process, screen candidates and file the required paperwork.
These negotiated and/or statutory tax incentives are offered to businesses to encourage economic development, often in designated areas or zones. We work in conjunction with your tax and real estate team to coordinate the necessary identifying and claiming procedures on local, state and national levels. We administer the entire process, from identification to application and retrieval - searching out, identifying and applying for all incentives that are advantageous to your business.
Many job seekers are WOTC eligible
Millions of dollars in WOTC incentives go unclaimed each year - even though employers are hiring from designated target groups. Check out this info-graphic to learn more about the wide range of eligible applicant populations.Download the WOTC 101 infographic
We make tax credits work for you
When it comes to helping employers realize their tax credit potential, MAXIMUS is both pioneering and progressive. Our extensive history in providing tax credit services dates back to 1978, when we began helping companies process their new hires through the Targeted Jobs Tax Credit program.
Today, MAXIMUS helps employers like you identify WOTC-eligible candidates and capture these often-overlooked tax benefits – with little to no additional demand on their human resources staff.
Our tax credit practice principles
- Our primary objective is client satisfaction.
- Our ultimate goal is tax credit maximization.
- We provide state-of-the-art technology and flexible management methods.
- We always protect client confidentiality.
Common WOTC Questions
- What is the Work Opportunity Tax Credit (WOTC)?
WOTC is a one-time tax credit that can be claimed for each new employee that has been hired from certain target groups of job seekers. These target groups are made up of people who may face employment barriers, such as unemployed veterans, designated community residents and those who are receiving Supplementary Security Income (SSI).
- What is a WOTC form?
If you are an employee just starting work with an employer, you may have been given WOTC forms to complete. The WOTC form is officially known as the WOTC Individual Characteristics Form – ETA 9061. You will need to provide your name, residential address, date of birth and social security number. You will then need to answer a series of questions, checking the boxes that apply to you. For example, if you are a veteran, you may need to provide a DD214 form or other supporting documentation.
- What is IRS form 8850 and what is it for?
Another form that employers will need to complete is IRS form 8850. These forms are used to pre-screen employees and make a written request to the State Workforce Agency (SWA) to confirm that they are a certified member of a targeted group. If the individual is certified, qualification for work opportunity credit will be granted.
- How do you submit WOTC tax credits?
Once all paperwork has been completed, you must send the IRS form 8850 and ETA form 9061 to your SWA within 28 days of the employee's start date. The SWA will determine eligibility and issue a certification, request for additional information or a denial. If you receive certification, you will need to complete IRS form 5884 to claim your tax credits.