The Work Opportunity Tax Credit (WOTC)

The Arizona WOTC, which is short for the work opportunity tax credit in Arizona, is an important tool that can help employers earn a tax credit for their business. Understanding the Arizona work opportunity tax credit benefits can be useful for business owners, as they can see just what incentives the program may bring. There are specifics when concerning Arizona work opportunity tax credit eligibility that should be factored into the decision to participate. For instance, what is the criteria to participate in the WOTC program and are there any employees who may be excluded? All employers should understand the Arizona work opportunity tax credit application and how it can be submitted. In addition, those who wish to participate in this tax credit program should discover the additional forms and resources which can be necessary in terms of applying. To find out more information regarding how to get involved in the work opportunity tax credit in Arizona, continue reviewing the information below.

What is the work opportunity tax credit in Arizona?

The Arizona WOTC is a program offered to employers in order to earn a federal tax credit for certain employees. The amount of money earned through the work opportunity tax credit in Arizona will vary, using different requirements and eligibility criteria in order to determine the tax credit total. The WOTC will be determined based on new employees and whether or not they qualify as a member of the specified target groups. These target groups in Arizona are mandatory for private-sector businesses to consider when hiring employees in order to receive a tax credit. Eligibility requirements for the work opportunity tax credit are important to consider and can make a difference in whether or not an employer will receive the tax credit he or she deserves. To find out more information regarding the Arizona work opportunity tax credit, download our helpful guide today.

What are the Arizona work opportunity tax credit benefits?

The Arizona work opportunity tax credit benefits provide employers with financial incentive when they hire an employee from a particular target group. Although the Arizona work opportunity tax credit benefits employers, it also the benefits employees. The private-sector businesses are more apt to hire individuals from target groups who have faced consistent barriers in regards to employment. Employers can only receive WOTC benefits for new hires who meet criteria, not current or rehired employees. Companies that understand the qualifications for each employee will be able to differentiate the benefits associated. For example, when an employer participates in the WOTC and hires a veteran who has been unemployed for four weeks, then he or she will receive a significantly less tax credit compared to when an employer hires a veteran who has been unemployed for six months. In order to learn more about the financial benefits for employers who participate in the work opportunity tax credit in Arizona based on employee eligibility, download our guide today.

What are the Arizona work opportunity tax credit requirements?

Meeting the Arizona work opportunity tax credit requirements is one of the most important components of the WOTC. Not every employer can participate in Arizona work opportunity tax credit registration which is why meeting eligibility so important. In order to receive the tax credit, employers must hire a new employee who is a qualifying member of the target groups and who is working a minimum of 120 hours in their first year. The target groups which employees must be a part of includes eligible:

  • Veterans

  • Long-term Temporary Assistance for Needy Families (TANF) Recipients

  • Short-term TANF Recipients

  • Supplemental Nutrition Assistance Program (SNAP) Recipients

  • Vocational Rehabilitation Referrals

  • Ex-felons

  • Supplemental Security Income (SSI) Recipients

  • Long-Term Unemployment Recipients

An employer is eligible for the Arizona WOTC as long as he or she hires a new employee who fits into one of the above-mentioned categories. There are certain criteria for each category, however, that may need further consideration in order to approve. For instance, when an employer is hiring a veteran then he or she must be a qualifying veteran. Qualifying veterans for WOTC include veterans who are disabled, veterans who participate in the SNAP benefit program, and veterans who have been unemployed to name a few. With each employee eligibility criteria for the Arizona work opportunity tax credit, there are certain qualifications which also apply in order for the employer to receive the tax credit.

How to Get Involved in the Work Opportunity Tax Credit in Arizona

Employer must know how to submit an Arizona work opportunity tax credit application in order to participate in the program. The Arizona work opportunity tax credit eligibility form can be accessed online. An employer will need to register for a WOTC online account and create a profile. Employers will need to input their Federal Employer Identification Number (FEIN) in order to search for their business in the system. The Arizona work opportunity tax credit online systems are intended to make the application process much simpler for employers and in turn, make the application form user-friendly.



What Kinds of Employment Services Does Arizona Offer?

The state of Arizona offers various programs meant to assist residents who have become unemployed. These employment services include unemployment insurance programs and job training initiatives. To learn about how you can apply for unemployment benefits and receive job assistance in Arizona, download our guide today.


Who Is Eligible for Employment Services in Arizona?

Arizona residents that meet certain criteria can qualify to receive employment benefits and training. The state has set job loss standards that determine the eligibility and amount of benefits an individual may be able to receive. To find out if you are eligible for Arizona unemployment benefits, download our guide now.