Get IRS 8850 2009

Purpose of Form Employers use Form 8850 to pre-screen and to make a written request to the state workforce agency (SWA) of the state in which their business is located (where the employee works) to certify an individual as a member of a targeted group for purposes of qualifying for the work opportunity credit.

Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit is the form you use to prescreen an individual you are hiring who is part of a targeted group that qualifies for the Work Opportunity Credit. The targeted groups are: 1. Qualified IV-A recipient.

What is the Work Opportunity Tax Credit (WOTC) Program? 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.

In general, your business can earn a tax credit of 25 percent or 40 percent of the new employee's first-year wages. There is a maximum amount depending on the target group. Your business can earn 25 percent of the wages if the employee works at least 120 hours and 40 percent if the employee works at least 400 hours.

CMS Says: The Work Opportunity Tax Credit (WOTC) is voluntary program that has been around since 1978. An employee may refuse to complete the WOTC forms 8850, and 9061 with no adverse impact to them. In our 21+ years of performing WOTC Screening and Administration we've saved millions for our customers.

Businesses that hire eligible unemployed veterans can take advantage of a Work Opportunity Tax Credit (WOTC). ... For WOTC-certified new hires working 400 hours or more, employers can claim 40% of the first year wages up to $6,000, for a maximum income tax credit of up to $2,400.

The Work Opportunity Tax Credit (WOTC) is a Federal tax credit available to employers for hiring individuals from certain targeted groups who have consistently faced significant barriers to employment.

The Work Opportunity Tax Credit (WOTC) is a Federal tax credit available to employers for hiring individuals from certain target groups who have consistently faced significant barriers to employment.

After the required certification (Form 8850) is secured, tax-exempt employers claim the credit against the employer social security tax by separately filing Form 5884-C, Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans.

P.L. 112-56 made the WOTC refundable for certain tax-exempt employers. For these employers, the refundable credit would be the lesser of the calculated WOTC for hiring veterans who qualify for the WOTC based on unemployment or the payroll taxes paid by the tax-exempt employer.

A tax credit survey is simply a questionnaire designed to identify job applicants covered by a tax incentive. For example, Macy's adds a tax credit survey to its application form to identify applicants who, if hired, qualify the company for the Work Opportunity Tax Credit.

The rural renewal county is an area added to the WOTC. It is defined as any county outside a metropolitan statistical area that had a net population loss during the periods 1990 - 1994 and 1995 - 1999.

The Renewal Communities (RCs), Empowerment Zones (EZs) and Enterprise Communities (ECs) are highly distressed urban and rural communities that may be eligible for a combination of grants, tax credits for businesses, bonding authority and other benefits.

Rural Renewal Counties. The rural renewal county is an area added to the WOTC. It is defined as any county outside a metropolitan statistical area that had a net population loss during the periods 1990 - 1994 and 1995 - 1999. This definition includes 408 counties, covering 32 states.

Empowerment zones (EZs) are economically distressed communities designated by government for aid but this aid is intended primarily to lift the communities out of poverty by stimulating business enterprise and creating jobs. "Empowerment" is thus a somewhat euphemistic or hopeful term.