Work Opportunity Tax Credit

WOTC is a Federal tax credit available to employers who hire and retain veterans and individuals from other target groups with significant barriers to employment. The tax credit employers can claim depends upon the target group of the individual hired, the wages paid to that individual in the first year of employment, and the number of hours that individual worked. There is also a maximum tax credit that can be earned.

For the long-term Temporary Assistance for Needy Families (TANF) target group only, the credit is available to employers who hire members of this group for up to a two-year period.

• In the first year, the employer may claim a tax credit equal to 40% of the first-year wages, up to the maximum tax credit, if the individual works at least 400 hours.
• In the second year, the employer may claim a tax credit equal to 50% of the second-year wages, up to the maximum tax credit, if the individual works at least 400 hours.

For all other target groups, the credit is available to employers who hire members of these groups, based on the individual's hours worked and wages earned in the first year.

• If the individual works at least 120 hours, the employer may claim a tax credit equal to 25% of the individual's first year wages, up to the maximum tax credit.
• If the individual works at least 400 hours, the employer may claim a tax credit equal to 40% of the individual's first year wages, up to the maximum tax credit.

Each submitted WOTC application is tied to the e-mail address that is used to log in to wotc.ehawaii.gov and can only be viewed by the staff member to whom the e-mail address belongs.

For companies that have more than one person submitting WOTC applications and want visibility into all applications, a "queue" that displays all applications can be organized.

To organize a "queue" for your company, the first step is to:

• Create a generic or WOTC-specific e-mail address that can be accessed by staff members who will be submitting WOTC applications. This e-mail address will be used to create a WOTC-specific eHawaii.gov account.
  • Example WOTC-specific e-mail address: abc.wotc@abc.com

To create your WOTC-specific eHawaii.gov account:

• Enter the generic or WOTC-specific e-mail address.
• Enter the company name as the first and last name in the account profile.
  • Example: ABC Consulting. ABC (first name) Consulting (last name)
• Create a password and complete the account profile.

After the account is created:

• Staff members who will be submitting applications must log in to wotc.ehawaii.gov with the email address and password of the WOTC-specific eHawaii.gov account.
• E-mail notifications (request for additional information, approval, denial, etc.) will be sent to the email address associated with the WOTC-specific eHawaii.gov account.

It is recommended that a manager be responsible for:

1. setting up the account
2. distribution of password to authorized staff members
3. password reset, changing of password, and distribution of new password

1. Log in to WOTC.

2. Register the Business applying for the tax credit. If acting as a Consultant for an Employer, be sure to attach your Power of Attorney.

3. Complete the online IRS Form 8850.

4. Complete the online ETA Form 9061. Both 8850 and 9061 must be submitted within 28 calendar days of the employee's start date.

Note:

• If you select Yes to question #7 (LTUR) on the IRS Form 8850, you must provide a completed ETA Form 9175. DO NOT include the SSN on the 9175. You will be able to add it online.
• Consultants and Employers are responsible to maintain all hardcopy application forms and original signatures.

• Veterans
• Long-Term/Short Term TANF Recipient
• SNAP (food stamp) Recipient
• Vocational Rehabilitation (VR)
• Referred Individual
• Ex-Felon
• Supplemental Security Income (SSI)
• Summer Youth Employee
• Designated Community Resident (living in Empowerment Zones or Rural Renewal Counties)
• Long-Term Unemployment Recipient

Employers generally can earn a tax credit equal to 25% or 40% of a new employee's first-year wages, up to the maximum for the target group to which the employee belongs. Employers will earn 25% if the employee works at least 120 hours and 40% if the employee works at least 400 hours.

Click to visit the United States Department of Labor website https://www.doleta.gov/business/incentives/opptax/wotcResources.cfm

• Administration Office
  • Telephone Number: (808) 586-8877
  • Fax: (808) 586-8822
  • Email: dlir.workforce.develop@hawaii.gov
• Oahu - Honolulu Office
  • Telephone Number: (808) 586-8700
  • Fax: (808) 586-8724
  • Email: dlir.wdd.honolulu@hawaii.gov
• Oahu - Waipahu Office
  • Telephone Number: (808) 675-0010
  • Fax: (808) 675-0011
  • Email: dlir.wdd.waipahu@hawaii.gov
• Hawaii Island - Hilo Office
  • Telephone Number: (808) 981-2860
  • Fax: (808) 981-2880
  • Email: dlir.wdd.hilo@hawaii.gov
• Hawaii Island - Kona Office
  • Telephone Number: (808) 327-4770
  • Fax: (808) 327-4774
  • Email: dlir.wdd.kona@hawaii.gov
• Maui Office
  • Telephone Number: (808) 984-2091
  • Fax: (808) 984-2090
  • Email: dlir.wdd.maui@hawaii.gov
• Kauai Office
  • Telephone Number: (808) 274-3056
  • Fax: (808) 274-3059
  • Email: dlir.wdd.kauai@hawaii.gov

• Submitted = You have successfully submitted your tax credit application into the system.
• Create 9061 = You still need to complete the ETA Form 9061 to complete the application process.
• 48 Hour Review = Federal requirement to place in this status to perform a cursory review of the application.
• In Progress = Admin is reviewing the submission, requesting benefits, etc.
• Pending = Waiting for Admin to take action.
• Pending SSD = Supporting document(s) is/are being requested for the application. Please obtain and attach in the Form 9061, bottom section "Add Attachment".
• SSD = You have "Submitted Supporting Documentation".
• Approved = Your application has been approved.
• Denied = Your application has been rejected with an explanation/reason.

This site only processes, tracks and provides status for applications that have been submitted online. Check your dashboard queue for status. If you mailed in your application, you will need to contact that office.

• Employer's can represent themselves and submit tax credit applications, or they can hire a consulting firm to submit on their behalf.
• If you are acting as a Consultant for an Employer, you are required by law to have a completed "Form 2848 - Power of Attorney and Declaration of Representative" on file in the WOTC website.
• Status mean:
  • Active = your POA is currently active
  • Inactive = your POA start date is a future date.
  • Expired = your POA expiration date has expired.
  • Requires Power Of Attorney = you need to upload POA when you register a business. Return to the Business Profile to upload.
• When I start the tax credit application process, why is the Employer name grayed out? You have not uploaded your POA.