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of the Commonwealth of Pennsylvania

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    Work Opportunity Tax Credit (WOTC)

    The Work Opportunity Tax Credit (WOTC) is a federal tax break. It's for hiring people from targeted groups. These groups face barriers to getting jobs. WOTC also promotes workplace diversity. It helps American workers find good jobs.

    Apply for WOTC

    Work Opportunity Tax Credit Hiatus Message

    PA Department of Labor & Industry Work Opportunity Tax Credit unit will accept and fully process (i.e., issue certifications or denials) all timely submitted WOTC certification requests for individuals with start dates on or before December 31, 2025.  PA will use the “start date” provided on the IRS Form 8850.

     

    For individuals who begin work on or after January 1, 2026, PA Department of Labor & Industry Work Opportunity Tax Credit unit will accept, date stamp, log, and retain certification requests using the approved IRS and ETA WOTC Processing Forms.  PA WOTC unit will not issue certifications with respect to these certification requests until otherwise informed by U. S. Department of Labor Employment Training Administration (ETA). 

    Please send any questions to RA-BWPO-TAXCREDITS@pa.gov

    Please note: Starting April 7, 2023, all Work Opportunity Tax Credit (WOTC) services will shift to PA CareerLink. Use your current login details. Find desk guides in the Help Center under “Employer Documents”. For questions, call us at 800-345-2555.

    Program overview

    The Work Opportunity Tax Credit (WOTC) helps employees become self-sufficient. They earn and pay taxes. Benefits for businesses include:

    • Choosing the final hires.
    • Simple paperwork for tax credits.
    • Hiring as needed.
    • A range of qualified candidates, including veterans.

    The USDOL WOTC site and L&I's one-pager offer valuable information and resources. Pennsylvania's L&I simplifies tax credit access for businesses.

    How it works

    Before claiming the credit, an employer must confirm an individual's targeted group membership. They should submit Form 8850 through L&I within 28 days of the worker's start. Employers can get a tax credit of 25% or 40% of a new employee's first-year wages. This is up to the maximum for the employee's group. They get 25% if the employee works over 120 hours and 40% if over 400 hours. Use the WOTC Calculator to find out your business's potential tax credit.

    For employers

    The USDOL ETA released TEGL 16-20, updating the steps for WOTC applications. Check page 5 (Item C) for details and page 7 for Employer Appeals. Also, employers must register their EIN with our Unemployment Commission before applying for WOTC.

    For questions, contact the Tax Credit Services Unit at (800) 345-2555 or email us.