The Work Opportunity Tax Credit (WOTC) is a federal tax credit available to employers for hiring individuals from certain target groups who have consistently faced significant barriers to employment.
To be considered a veteran for any of the groups listed below, the applicant must have served on active duty (other than active duty for training) for a period of more than 180 days in the Armed Forces of the United States or have been discharged or released from active duty for a service-connected disability, and not having, during the 60-day period ending on the hiring date, any day of extended active duty.
Veteran receiving food stamps - A veteran who is a member of a family that received food stamps for at least a 3-month period during the 15-month period ending on the hiring date.
For this target group, documentation of veteran status (usually Form DD-214) must be submitted.
Unemployed veteran - A veteran unemployed for at least four weeks in the year prior to hire or a veteran unemployed for at least six months in the year prior to hire.
Disabled veteran - A veteran who is entitled to compensation for a service-connected disability and has a hiring date which is not more than one year after having been discharged or released from active duty or has aggregate periods of unemployment during the one-year period ending on the hire date that equals or exceeds six months.
For this target group, documentation issued by the Department of Veterans Affairs certifying the veteran has a service-connected disability must be submitted.
Members of families that have received Temporary Assistance for Needy Families (TANF) payments for at least 18 consecutive months ending on the hiring date; or have received TANF payments for any 18-month period since Aug. 5, 1997 and the earliest 18 month-period ended during the two years prior to the hiring date, or whose family within the two years prior to hiring became no longer eligible for TANF payments because federal or state law limited the maximum time those payments could be made.
Members of families that received Temporary Assistance for Needy Families (TANF) payments 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.
Individuals 18-39 years old who are 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.
Persons who are employed within two years of their last date of service approved by a state or the U.S. Department of Veteran Affairs or received services under the Ticket to Work program.
For veterans, please submit documentation of rehabilitative service dates.
Individuals whose date of felony conviction or release is not more than one year prior to date of hire or are currently enrolled in a work release program.
Employers working with state or federal work release programs are encouraged to submit documentation for this target group.
The Federal Bonding program provides fidelity bonds to anyone who is not eligible for commercial bonding. Bonding for six months – at no cost to the employee – may be obtained through the Idaho Department of Labor. Click here to learn more.
Individuals who received supplemental security income (SSI) benefits for any month during the 60 days before date of hire. Please note that Supplemental Security Disability Income (SSDI) is not the same as SSI.
Individuals who are in a period of unemployment which is not less than 27 consecutive weeks and includes a period in which the individual was receiving unemployment compensation under State or Federal law.
The applicant must complete the Long-Term Unemployment Recipient Self-Attestation Form, ETA Form 9175.
Since there are no Empowerment Zones or Rural Renewal Counties in Idaho, the Idaho WOTC Unit is unable to process certification requests for the Designated Community Resident or Summer Youth target groups.
The job applicant completes page one of IRS Form 8850 (Pre-Screening Notice and Certification Request for the Work Opportunity Tax Credit) on or before the day a job offer is made.
IRS Form 8850 (Pre-Screening Notice and Certification Request for the Work Opportunity Tax Credit) Form | Form instructions
If the job applicant indicates potential eligibility by checking one of the boxes on page one of IRS Form 8850, the employer completes the rest of the form no later than the day the job offer is made, and then ETA Form 9061 (Individual Characteristics Form) is completed.
ETA Form 9061 (Individual Characteristics Form) English | Spanish
Form 8850 and 9061 must be submitted within 28 calendar days after the new hire’s start date. The forms may be e-filed or sent via mail or fax. Please be sure to keep documentation for your records.
Idaho Department of Labor
Attn: WOTC Unit
317 W. Main St
Boise, ID 83735
Keep in mind:
For questions, please contact the Idaho WOTC Unit at WOTC@labor.idaho.gov.
For more information:
Visit the U.S. Department of Labor at https://www.doleta.gov/business/incentives/opptax/
Visit the IRS at https://www.irs.gov/businesses/small-businesses-self-employed/work-opportunity-tax-credit
An Equal Opportunity Employer and Service Provider
Brad Little, Governor
Jani Revier, Director