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:
Please note that to have veterans status to be eligible for the WOTC, an individual must:
|Long-term Temporary Assistance for Needs Families (TANF) recipients||
|Short-term Temporary Assistance for Needs Families (TANF) recipients||
|Supplemental Nutrition Assistance Program (NJ SNAP, formerly Food Stamps) recipients||
|Designated Community Residents (DCR)||
|Vocational rehabilitation-referred individuals||
|Supplemental Security Income (SSI) recipients||
|Summer youth employees||
|Long-term unemployed (new target group as of January 1, 2016)||
Tax credits for eligible employees
|Target Group||Maximum Tax Credit|
|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|
|Long-term unemployed (January 1, 2016)||$2,400|
|NJ SNAP recipient||$2,400|
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.