ALERT

The following changes, effective July 1, 2021, are required by the U.S. Department of Labor through its Training and Employment Guidance Letter (TEGL) 16-20:

  • Appeals must be submitted within one year of original denial date.
  • Any errors on an application must be corrected within 28 days of hire date.
  • ESD is waiting for additional guidance for Power of Attorney (POA) issues – we will update this alert once more information is available.

Work Opportunity Tax Credit (WOTC)

 

The WOTC is a tax incentive for employers to hire certain hard-to-place job seekers. The goal is to help these individuals become economically self-sufficient and to reward employers who give them a chance.

Employers can reduce their federal business taxes by anywhere from $2,400 to $9,600 per eligible employee. The amount employers get is based on:

  • The employee's target group
  • Wages earned and hours worked by the employee

Employers cannot claim the WOTC for:

  • Relatives
  • Former employees
  • Undocumented aliens

Work Opportunity Tax Credit fact sheet - for a program overview and recent statistics

U.S. Department of Labor website – for updates and more information


To apply online
You must have a SecureAccess Washington (SAW) account and a WOTC account. Read How to apply then start here.

All applications must be submitted within 28 days of the employee's start date.


WOTC resources:
Online filing system | Eligibility | How to apply | Application deadlines


For more information:
 email ESDGPWOTC@esd.wa.gov or call 800-669-9271