The process to apply for the WOTC involves several steps:
Pre-screening: Entrepreneurs must use IRS Form 8850 to pre-screen and determine if an employee is a member of a targeted group. Submit Forms: Submit Form 8850 along with ETA Form 9061 or ETA Form 9062 to the state workforce agency within 28 days of the employee’s start date. Certification: The state workforce agency will review the submission and certify if the employee qualifies for the WOTC.
Understanding this process is crucial for entrepreneurs to ensure compliance and to successfully claim the tax credit.