The Work Opportunity Tax Credit (WOTC) is a federal income tax credit incentive provided to private sector employers. An employer may be eligible for WOTC when they hire from certain target groups of job seekers who face employment barriers. The WOTC tax credit is a one-time tax credit for each new hire - and there is no limit to the number of new hires who can qualify an employer for a tax credit. The requirements for this program are set by the Internal Revenue Service and the U.S. Department of Labor, Employment and Training Administration.
Employers that hire Nebraska VR's qualified candidates may claim the WOTC. Nebraska VR's Employment Specialists will access our candidate pool to find individuals with skills for your specific job openings then assist with the process required to apply for up to $2400 in federal tax credits.
The first step for new users is to register at the Nebraska Enterprise Content Management Portal. Basic information and the business' Federal Tax ID number are required to identify the employer to the IRS.
Complete page 2 of IRS Form 8850 after the individual is hired.
Complete ETA Form 9062 as Nebraska VR clients are certified as belonging to a WOTC target group because they are served by a Vocational Rehabilitation agency.
Electronically submit the information from the 8850 and 9062 forms along with supporting documentation at Nebraska Enterprise Content Management Portal within 28 calendar days of the employee's start date.
After receiving notification that a WOTC certification determination is available, view and print ETA 9063 certification that authorizes the employer to claim the WOTC tax credit.
Download IRS FORM 5884 which is the form you will need when claiming the WOTC tax credit.
Two other tax credits available in addition to the WOTC.
More information from the IRS: Tax Benefits for Businesses Who Have Employees with Disabilities
Nebraska VR Employment Specialists will help you with Nebraska's online WOTC submission process at NE WOTC Online where you can:
Electronically submit WOTC eligibility forms 8850 and 9062
Attach supporting documentation to verify applicant eligibility
View/print certification and denial determinations
Manage POA documents for agent representatives
The Pathway to Employment Video Series is designed to de-mystify the many services provided to clients and businesses while highlighting the innovation that is the culture of Nebraska VR. While certainly each story is either one of progress towards an employment goal or a client's employment goal success, they are also stories about the important role played by staff members, businesses, ATP, Easter Seals, Project SEARCH, and others. Go to: vr.nebraska.gov/videos/