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Work Opportunity Tax Credit (WOTC)

Hiring? Get tax credits for your new employees!

Businesses can save up to $4,800 the first year when they hire workers who traditionally face significant barriers to employment. Workers who qualify include:

Veterans
  • who are members of a family that has received Supplemental Nutrition Assistance Program (NJ SNAP, formerly Food Stamps) benefits for at least a three month period during the 15-month period ending on the hiring date; or
  • entitled to compensation for a service-connected disability, who have been:
    • hired within one year of discharge or release from active duty; or
    • unemployed for at least six months in the year ending on the hiring date; or
  • who have been unemployed for:
    • at least four weeks in the year ending on the hiring date; or
    • at least six months in the year ending on the hiring date.

Please note that to have veterans status to be eligible for the WOTC, an individual must:

  • have served on active duty (not including training) in the US armed forces for more than 180 days, or have been discharged or released from active duty for a service-connected disability; and
  • not have a period of active duty (not including training) of more than 90 days that ended during the 60-day period ending on the hiring date.
Long-term Temporary Assistance for Needs Families (TANF) recipients
  • who are members of a family that has received TANF benefits for at least 18 consecutive months ending on the hiring date.
Short-term Temporary Assistance for Needs Families (TANF) recipients
  • who are members of a family that received TANF benefits for any nine month period during the last 18-month period ending on the hiring date.
Supplemental Nutrition Assistance Program (NJ SNAP, formerly Food Stamps) recipients
  • who are 18-39 years old; and
  • who are members of a family that received NJ SNAP benefits for:
    • the six months ending on the hiring date; or
    • the recipients are able-bodied adults without dependents (ABAWD)-eligible for at least three of the five months ending on the hiring date.
Designated Community Residents (DCR)
  • who are 18-39 years old; and
  • reside within a Rural Renewal County (RRC) or an Empowerment Zone (EZ).
Vocational rehabilitation-referred individuals
  • completing or who completed rehabilitative services provided by:
    • a state-certified agency; or
    • an Employment Network under the Ticket to Work program; or
    • the US Department of Veterans Affairs.
Ex-felons
  • who have been convicted of a felony; and
  • who have a hiring date that is not more than one year after the conviction or release from prison.
Supplemental Security Income (SSI) recipients
  • who are recipients of SSI benefits for any month that ends during the 60-day period ending on the hire date.
Summer youth employees
  • who are 16 or 17 years old; and
  • work for the employer between May 1 and September 15; and
  • reside in an Empowerment Zone (EZ).
Long-term unemployed (new target group as of January 1, 2016)
  • that on the day before work begins is in a period of unemployment that not less than 27 weeks and includes a period (which may be less than 27 weeks) in which the individual recevied unemployment compensation under state or federal law.

Tax credits for eligible employees

 

Target Group Maximum Tax Credit
VETERANS
NJ SNAP recipient $2,400
Disabled veteran hired within one year of release from active duty date $4,800
Disabled veteran unemployed at least six months $9,600
Unemployed veteran at least four weeks in the one year prior to hire $2,400
Unemployed veteran at least six months in the one year prior to hire $5,600
OTHER TARGET GROUPS
Short-term TANF recipient $2,400
Long-term TANF recipient $9,000 (two years)
Designated Community Resident (RRC or EZ) $2,400
Vocational Rehabilitation referral $2,400
Ex-felon $2,400
SSI recipient $2,400
Summer youth $1,200
Long-term unemployed (January 1, 2016) $2,400
NJ SNAP recipient $2,400

WOTC restrictions

You CANNOT claim the Work Opportunity Tax Credit (WOTC):

  • for wages paid to your relatives.
  • if you do not pay federal income tax.
  • if your company is not for profit.
  • for any employee who has worked for you before (rehires).
  • for federally subsidized on-the-job training. However, wages paid after the subsidy expires may qualify for the credit. 

Apply online today!

Visit http://wotcnj.dol.state.nj.us to apply for the Work Opportunity Tax Credit (WOTC).

For consultants not yet registered, go to the Registration section on the consultant page. After registering, you may proceed with the application. For employers, you will need to enter your FEIN (Federal Employer Identification Number) and UI PIN (Unemployment Insurance Personal Identification Number) to access the system. Forget your UI PIN?  Call 609-292-9292. If you do not have a UI PIN, fax your request on company letterhead to the New Jersey Department of the Treasury at 609-292-4291. Be sure to include your FEIN, your signature, and your title.

Please note that the New Jersey Department of Labor and Workforce Development must certify the Work Opportunity Tax Credit before you can claim it on your federal tax return. Once you have received WOTC certification and your employee has worked the minimum number of required hours, use IRS form 5884, Work Opportunity Tax Credit, to claim your credit.