Benefit Your Business
 WOTC Group Specifics for Start Work Dates
on or after May 26, 2007		 Last Updated: June 02, 2008

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WOTC Group Specifics for Start Work Dates on or after May 26, 2007

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 Temporary Assistance to Needy Families (TANF) recipient – An individual who received or is a member of a family that has received, TANF assistance for any nine months during the 18-month period ending on the hiring date.
 

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Ex-felon – An individual convicted of a felony and hired within one year after conviction or release from prison. No economic eligibility determination based on family income.
 

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 Food Stamp Recipient - An individual aged 18 through 39, who is a member of a family that has received Food Stamps for a specific time period within the last six months.
 

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Designated Community Residents - An individual who is 18 through 39 years old on the hiring date and lives in a Federal Renewal Community, Empowerment Zone, or Enterprise Community (RC/EZ/EC) located in areas of New Haven. Renewal Community, Empowerment Zone, or Enterprise Community (RC/EZ/EC) addresses may be verified by accessing the Internet website of "HUD Locator Services" at http://egis.hud.gov/egis/cpd/rcezec/ezec_open.htm. You may also verify an RC/EZ/EC address by calling Community Connections, toll free, at (800) 998-9999.
- All Round I Enterprise Communities (ECs) expired on December 31, 2004.  Round II ECs are still in existence, but no tax benefits are available for them.
 

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Summer Youth employee -  An individual who is 16 or 17 years old on the hiring date, who starts work for the employer during the period of May 1 through September 15, and who lives in a Federal Enterprise Community, Empowerment Zone, or Renewal Community (RC/EZ/EC) located in areas of New Haven.
- All Round I Enterprise Communities (ECs) expired on December 31, 2004.  Round II ECs are still in existence, but no tax benefits are available for them.

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 Supplemental Security Income (SSI) recipient or Ticket-to-Work holder - An individual who has received Supplemental Security Income (SSI) for any month ending within the 60-day period ending on the hiring date, or a Ticket-to-Work holder* with an individual work plan through an Employment Network.
 

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 Veteran - Any veteran certified as:
 

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 a member of a family receiving Food Stamps for at least a three-month period during the 12-month period ending on the hiring date.
                        Or
 

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 Entitled to compensation for a service-connected disability, and:
(1)  having a hiring date which is not more than one year after having been discharged or released from active duty in the Armed Forces of the United States, or

(2) having been unemployed for six months or more (whether or not consecutive)  during the one-year period ending on the date of hiring.

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 Vocational Rehabilitation Referral or Ticket-to-Work holder - An individual with a physical and/or mental disability which may present a substantial barrier to employment, and who has received services under a State rehabilitation plan through the Bureau of Rehabilitation Services or the Board of Education and Services for the Blind, an Employment Network as a Ticket-to-Work holder* with an individual work plan, or has received vocational rehabilitation through the US Department of Veterans' Affairs.
 

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 Long-Term Family Assistance Recipient (Effective January 1, 2007) – Individuals must be Long-Term Family Assistance recipients or a member of a family who has received LTFAR.  Recipients include those:
 

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 who received Temporary Assistance to Needy Families (TANF), for at least 18 consecutive months ending on the date of hire;
 
 

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 whose TANF eligibility expired under Federal or State law after August 5, 1997, and are hired within two years after this eligibility expired, or
 
 

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 who received TANF for a total of at least 18 months after August 5, 1997, and are hired within two years after the 18-month period is reached.

Note:  Welfare-to-Work tax credit becomes a category under WOTC on or after January 1, 2007, not a separate tax credit. 

* The Ticket-to-Work Program assists disabled Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) beneficiaries with the training and support they need to go to work by increasing their choice of employment, vocational rehabilitation (VR) and other support services from public and private providers (Employment Networks). The Ticket-to-Work Program is flexible and voluntary, most disabled Social Security beneficiaries, age 18-64, receive a ticket (Ticket-holders).

For more information on the Ticket-to-Work program visit: Social Security - Ticket-To-Work Program Information
 

Tax Facts on or after May 26, 2007

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 The maximum tax credit for each new employee is $2,400 for WOTC for all categories except Summer Youth, Disabled Veterans and Long-Term Family Assistance Recipients.
 

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 For all categories of WOTC except Summer Youth, Disabled Veterans and Long-Term Family Assistance Recipients, if you hire a qualified individual whom you employ for at least 400 or more hours during the first 12 months, your company may receive a credit of 40% of up to $6,000 of his or her qualified wages.
 

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 For all categories of WOTC except Summer Youth, Disabled Veterans and Long-Term Family Assistance Recipients, if you hire a qualified individual whom you employ for at least 120 hours, but fewer than 400 hours during the first 12 months, your business may receive a tax credit of 25% of up to $6,000 of his or her qualified wages.
 

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 The Summer Youth group qualified wages earned from May 1 through September 15 for an individual are capped at $3,000 for a maximum tax credit of $1,200.
 

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 Disabled Veterans - Qualified first-year wages are capped at $12,000 for individuals who qualify under either of the new expansions of the qualified veteran group for a maximum tax credit of $4,800.
 *** The expanded definition of qualified first-year wages does not apply to the veterans qualified with reference to a food stamp program.***
 

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 For the Long-Term Family Assistance Recipient category of WOTC, employers may earn a Federal tax credit of up to  $9,000 over a two-year period.   The first-year maximum credit is $4,000, and the second year maximum credit is $5,000.

Qualified wages are capped at $10,000 per year per worker.

The first year employment criteria are the same as the WOTC, except that first year qualified wages are capped at $10,000:
 

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 If you hire a qualified individual whom you employ for at least 120 hours, but fewer than 400 hours during the first 12 months, your business may receive a tax credit of 25% of up to $10,000 of his or her qualified wages. If the qualified individual is employed for at least 400 hours during the first 12 months, your business may receive a tax credit of 40% of up to $10,000 of his or her qualified wages. 
 

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 If the qualified individual is employed for a second 12 months, your business may receive a tax credit of 50% of his or her qualified wages to a maximum of $5,000.

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Published by the Connecticut Department of Labor, Project Management Office