| Contents |
The Work Opportunity Tax Credit (WOTC) program is available to business owners. It provides a tax credit for hiring individuals from certain target groups who face barriers to employment.
The target groups included in this program are:
- Temporary Assistance for Needy Families (TANF), also called Qualified IV-A recipient;
- Qualified veteran.
- Qualified ex-felon.
- Designated community resident.
- Vocational rehabilitation referral.
- Recipient of SNAP benefits (food stamps).
- Supplemental Security Income (SSI) recipient.
- Long-term family assistance recipient.
- Qualified Long-term unemployment recipient.
Both for-profit and nonprofit employers are eligible for WOTC, but tax-exempt nonprofit organizations are only eligible to receive tax credits for qualified veterans.
Subscribers to the WOTC application can submit applications for eligible employees to receive this tax credit.
Requirements
You must have a Payroll account in order to use Heartland's Tax Credit services. If you have a standalone Hiring and Onboarding account, you will not be able to use this service.
If you do have a Payroll account, then WOTC services will be automatically enabled and all Tax Credit services and tabs will be available.
Setup
In order to begin using Heartland’s Tax Credit services, you will need to complete the following steps:
- Sign ETA Form 9198
- Agree to the WOTC Service Agreement
- Review WOTC settings and notifications
|
Note: An authorized individual from your company must sign ETA Form 9198 Employer Representative Declaration. This form is issued by the Department of Labor and authorizes us to represent your company for WOTC purposes, which allows us to file applications and necessary documentation with the State Workforce Agency (SWA) on your behalf, and to calculate your eligible tax credits. Without this form, we cannot process WOTC orders or calculate tax credits for your company. |
To complete this initial setup process, follow these steps:
- Enter the Company Profile and by selecting your user name from the upper right corner, then selecting Company Profile.
- Select WOTC from the left navigation panel.
-
Select Sign Form under the Employer Representative Authorization Form section
Note: This form must be signed by an authorized individual at your company
- Complete the Company Information section
-
Select your desired option for processing WOTC applications
- Auto processing enabled: WOTC applications will automatically be submitted and processed for eligible new hires
- Auto processing disabled: You must review and manually submit applications for eligible new hires
- Read and agree to the WOTC Service Agreement
- Click Sign Form to electronically sign ETA Form 9198
-
The final step in the form signing process is to provide your company’s accountant/CPA information if you use one. This will allow us to provide them with the necessary information to complete IRS Form 5884, which is needed In order to claim work opportunity tax credits. If you don’t use an accountant or CPA, you can skip this step.
From here, you can modify your settings to enable/disable auto processing for employee WOTC applications.
The WOTC Notifications field lists all team members who will be notified about WOTC applications and updates.
To add a team member, click the WOTC Notifications drop-down arrow and select a team member. To remove a team member, click the X next to their name.
Resources
In addition to modifying your WOTC settings and notifications, you can also view copies of your signed ETA Form 9198 and the WOTC Service Agreement on the WOTC tab under your Company Profile.
Billing
If a WOTC application is certified by the State Workforce Agency (SWA), then you will be billed directly through Heartland payroll.