1. Reward$ and In¢entive$
For Your Business
NC Dept. of Commerce
Division of Workforce Solutions
Applicant Services Unit
Jim Korth – Special Programs
2. Division of Workforce Solutions
Our mission is to promote and sustain the economic
well being of North Carolinians in the world
marketplace by providing high quality and
accessible workforce related services.
4. Work Opportunity Tax Credit
$129+
Million
PY 2010, October 1, 2010 –September 30, 2011
5. What is the WOTC?
A Federal Tax Credit program available to
employers who hire new employees from
various Congress determined “target
groups” which have historically had
difficulty in obtaining and retaining
employment (two of the target groups are
not available in North Carolina).
6. Target Groups
• Veterans receiving Supplemental
Nutrition Assistance
• Veterans with a Service-
Connected Disability
• Veterans with a Service-
Connected Disability
unemployed at least 6 months
• Veterans unemployed at least 4
weeks
• Veterans unemployed at least 6
months
• TANF Recipients
• Ex-Felons
• Designated Community
Residents
• Vocational Rehabilitation
Recipients
• Summer Youths
• Food Stamp Recipients
• SSI Recipients
• Disconnected Youths
• Long-Term Welfare Recipients
7. Program Status
• WOTC expired 12/31/2011
• Veteran’s groups are active under the “Vow to
Hire Heroes” Act
• While waiting for reauthorization, employers
should continue to submit requests
8. What Are The Benefits?
• Standard Benefits
– $2,400
• 40% of the first $6,000 in qualified wages if the
employee is retained at least 400 hours
– $1,500
• 25% of the first $6,000 in qualified wages if the
employee is retained between 120 and 399 hours
9. What Are The Benefits?
• Additional Benefits
– $4,800
• 40% of the first $12,000 in qualified wages if the
employee is a veteran with a service connected
disability
– $9,600
• 40% of the first $24,000 in qualified wages if the
employee is a veteran with a service connected
disability and unemployed at least six months
10. What Are The Benefits?
• Additional Benefits
– $5,600
• 40% of the first $14,000 in qualified wages if the
employee is a veteran unemployed for at least six
months
– $9,000
• Over two years if the employee is am long-term
welfare recipient ($4,000 first year, $5,000 second
year)
11. How to Screen for WOTC
• Job applicants complete IRS form 8850 (Pres-
Screening Notice)
• ETA-9061 (Individual Characteristics Form)
must also be completed for employees that
check yes to any questions on the 8850
• The employer mails documents to DES
postmarked no later than the 28th day after
the employment start date.
12. What Happens Next?
• When DWS receives the IRS-8850, the ETA-
9061, and documentation, we review the
entire application for eligibility including
timeliness.
• DWS will respond with:
– Certification
– Denial
– Return Letter
13. How Do I Claim the Credit?
• At tax time, IRS form 5884, "Work Opportunity Tax
Credit" is used to determine the credit amount.
• This is transferred to IRS form 3800, "General
Business Credit" where it is included with other
credits the business may receive.
• Finally, the total from the General Business Credit is
transferred either to IRS 1040 (for individuals) or
form 1120 (for corporations).
14. Things To Remember
• WOTC applies to new/first time hires only
• There is no limit to the number of WOTC
applicants you hire
• You have up to 10 years to claim the credit
• You only have 28 days after hire to submit
application
• DWS can assist you in any way necessary
15. What is Federal Bonding?
• The Federal Bonding Program provides Fidelity Bonds
that guarantee honesty for “at-risk”, hard-to-place job
seekers.
• The bonds cover the first six months of employment.
• There is no cost to the job applicant or the employer.
• The Federal Bonding Program is a partnership between
the U. S. Department of Labor and The McLaughlin
Company, an insurance brokerage firm, as agent for
Travelers Casualty and Surety Company of America.
16. Who is Eligible for Federal Bonding?
• Poor credit history
• Record of arrest, conviction or imprisonment
• History of alcohol or drug abuse
• Lack of employment history
• Dishonorable discharge
• Anyone who cannot secure employment
without bonding
17. Federal Bonding Procedures
• A job offer is made to an “at risk” individual
• The employer contacts the local DWS Office and
provides information including employee’s name,
Social Security Number, and start date
• Bond can be issued to the employer as soon as the
applicant has a job offer with a date scheduled to
start work
18. What is covered by Federal Bonding?
• Covers any type of stealing: theft, forgery,
larceny, and embezzlement
• Does not cover “liability” due to poor
workmanship, job injuries, work accidents,
etc.
• The bond insurance issued starts at $5,000
coverage for a 6-month period with no
deductible
19. Things to Know
• All persons bonded must meet the legal working age set
by the State in which the job exists
• Self-employed persons are NOT ELIGIBLE for bonding
services (bondee must be an employee who earns wages
with Federal taxes automatically deducted from
paycheck)
• Bonds can be issued to cover already employed workers
who need bonding in order to (a) prevent being laid off,
or (b) secure a transfer or promotion to a new job at the
company
21. Contact Information
Jim Korth
Special Programs Coordinator
NC Department of Commerce
Division of Workforce Solutions
Applicant Services Unit
PO Box 27625
Raleigh, NC 27611
james.korth@nccommerce.com
919-814-0457
