WOTC Orientation: The Online Application Process
The WOTC Program | WOTC Online Application | Manager WOTC Login | Best Practices | Contact
The WOTC Program
The work opportunity tax credit program (WOTC) was developed as a partnership between the U.S. Department of Labor and the IRS. WOTC provides employers an opportunity to earn tax credits for hiring individuals from federally recognized target groups that typically have high unemployment rates. Earned tax credits are calculated and subtracted from the total amount owed to the IRS, reducing the amount your company must pay in taxes.
WOTC Qualifications
Those who are qualified for WOTC come from three demographics: those who have received government assistance (including the new long-term unemployment group, added January 1, 2016), veterans, and those who live in an empowerment zone.
Received Government Assistance:
1. Welfare (TANF)
2. Long-term Welfare
3. Food Stamps
4. Vocational Rehabilitation
5. SSI
6. Ex-Felons
7. Long-term Unemployed
Veterans:
8. Received Food Stamps
9. Unemployed 4+ Weeks
10. Disabled
11. Disabled and Unemployed 6+ Months
Federal Zone:
12. Empowerment Zone Resident
13. Summer Youth
Only new hires are eligible for WOTC – rehires cannot qualify. Once a new hire fulfills the initial screening qualifications, an employee must work 120 hours before we use their wages to calculate the tax credit.
Potential Savings
The potential tax credit an employer can receive per employee is based on the target group the employee falls under, which is broken down as follows:
- Unemployed Veteran: $5,600
- Disabled Veteran: $9,600
- Long-term Welfare: $9,000
- Year 1: $4,000
- Year 2: $5,000
- All other Target Groups: $2,400
Who Completes the Forms?
Every new hire should complete the WOTC forms. Any attempt to sort through applications before submitting them to McKenzie Chase Management can result in missed opportunities for tax credits.
These forms are time sensitive, so they must be sent to McKenzie Chase Management as soon as possible. It’s best to send new hires’ WOTC within five days of filling them out. Any applications that are submitted after the deadline will not be accepted.
WOTC Online Application
To begin, applicants can access the WOTC online application at https://WOTC.McKenzieChase.com using login information you send them, as described later in this guide. When an employee logs in, they will be taken to the first page of the WOTC application.
Work Opportunity Tax Credit Eligibility Worksheet
The first page of the application is the Work Opportunity Tax Credit Eligibility Worksheet. This page asks for personal information such as name, date of birth, address, phone number, and social security number.
This page also asks for the new employee’s expected start date. This start date is important; application will not be accepted 28 days after the employee’s start date. When done filling in this information, click “Next.”
Agreement to Participate in Electronic Records and Electronic Signatures
This agreement is required in many states, and informs the applicant that the records and signatures they provide here will be kept electronically only for tax credit purposes. Click “Accept” to accept the terms outlined in this agreement and to move on to the next page.
WOTC Pre-Screening Questionnaire
Next, your new hire will be asked 8 questions to determine WOTC eligibility. An applicant must answer “yes” or “no” to these questions to the best of their ability – there is no right or wrong answer.
Answering “yes” to certain sections may prompt further questions – answering these additional questions would be helpful, but they are not required.
1. SNAP or Food stamps
The employee can answer “yes” if he or she has received food stamps or has been in a household with someone who has received food stamps.
2. Temporary Assistance (TANF or Welfare)
Answering “yes” to this question will prompt a question asking the name of the TANF recipient in the employee’s household.
3. Veteran
If the applicant was a veteran of the U.S. Armed Forces, clicking “yes” reveals a series of checkboxes. Answering these questions can be helpful, but they are not required. This section also asks if the veteran was unemployed and received unemployment benefits.
4. Rehabilitation or Referral
This question applies to applicants who have received work rehabilitation provided by the government at a local, county, state, or federal level. Each level has its own programs that the applicant may have benefited from. If the applicant answers “yes,” they will be asked the name and phone number of their rehab counselor.
5. SSI Income
An applicant can check “yes” if he or she has received SSI at any time during the last 60 days.
6. Ex-Offender Status
Check “yes” if the applicant has been convicted of a felony within the past year. Answering “yes” will prompt more questions; the D.O.C. number is most helpful information here, but is not required.
7. Long-term Unemployed
This section asks if the applicant has been unemployed for a total of 6 months or more and if he or she has ever received unemployment benefits at any time during unemployment. If an applicant has been unemployed for over 6 months, he or she will be prompted to submit the dates of unemployment.
8. Previously Employed
Employees who have been previously employed at your company must answer “yes” and provide the previous dates of employment. Only applicants who answer “no” to this question will be eligible for WOTC tax credits.
Note: This question relates to the company you work for, regardless of brand name. The same business name can be used by different companies.
Finally, the applicant must read the statement at the bottom of the page and check “yes” to authorize the appropriate government agencies to release information to the WOTC State Office to identify eligibility. After answering all the questions, click “Next” to continue with the application.
View and Sign Forms
Forms that appear on this page must be viewed and signed electronically before the applicant can complete and submit the WOTC application. The 8850 and the Release of Information Consent Form will always be required. However, if an applicant self-qualified for long-term unemployment, they will be prompted to view and sign the WOTC Long-term unemployed Affidavit. Employees click the “View & E-sign” buttons to view and sign each form.
The 8850 is a pre-screening form. It is auto-populated based on the personal information and answers that were given earlier in the pre-screening questionnaire.
The Release of Information Consent Form gives permission to WOTC to research the employee’s background to determine eligibility for a tax credit.
The Long-term Affidavit is an additional form that is required if the applicant answered “yes” to both long-term unemployed questions. This form is auto-populated.
On each form, a tan box will appear at the bottom of the screen with a checkbox. For each form, new hires must follow these steps to sign each form and verify that the information included is correct to the best of their knowledge:
The employee must verify that the information is correct and check the corresponding yellow box at the bottom of the screen, confirming that he or she has viewed and understood the form 8850.
The oath below replicates the statement at the bottom of the 8850, asking the applicant to confirm that the information in this application is correct to the best of their knowledge. Clicking “eSign” electronically signs the document.
The applicant has finished reviewing and signing this document. Clicking “Next Document” automatically takes the user to the final step of the application.
After viewing and electronically signing these forms, the applicant will be returned to the main page. Each form that has been viewed and signed will be listed as “done.” The applicant can either press the “Submit” button next to each form, or press the “Submit All” button at the bottom of the page to electronically submit their application, completing the application process.
After e-signing and submitting all the documents, a confirmation page will appear, verifying that the applicant has completed the application process. The applicant can print this page to use as verification. Click “Done” to end the process.
Manager WOTC Login
Accessing the Online Application
To set up employees with a WOTC application, a location manager can take one of two approaches:
- Use a manager login to send an employee an email with a unique username and password. After receiving this login information, the employee can access the WOTC application on any device of their choice.
- A manager can log on to the WOTC website and set up the WOTC application for the new employee. The employee can then use the manager’s computer under supervision.
To get an employee started with a WOTC application, log in to the location manager WOTC account given to you by McKenzie Chase Management and continue through the following steps:
1. Hiring Manager Homepage
This is the location manager homepage. Click the “Start Here” button to set up an employee with the WOTC application.
2. Hiring Manager: Get a New Hire Started
If the employee will be using the manager’s computer to complete the questionnaire and forms, do not click the yellow button. Simply enter the employee’s first and last name and press “Next” to go to the next step.
Note: To print or e-mail an invitation to the application, click the yellow button before clicking “next.” This will allow you to give an employee the login information he or she needs to complete the application on another device.
3. Activate Login: New Hire’s Credentials
This page creates a login for the employee. The text in the embedded scrolling box contains a message for the employee, complete with login, password, and a link to MCM’s website. To hand over the computer to the employee to complete the application in person, press “Next” at the bottom of the screen.
4. New Hire: Please be Seated
On this page, ask the employee to take over at the computer. Here, the employee can choose whether to continue the application in English or Spanish by clicking the green “English” or “Español” button in the middle of the screen. The employee will then press “Next” to continue the application.
5. New Hire Identity Check
For legal reasons, the employee must check the checkbox at the bottom of the page to verify that they are in fact the one completing the application. After checking the box, the employee can press the “Login to Start” box to begin the application.
Corporate Login Page
The corporate login can provide additional functions for those in charge of the hiring process. This is a helpful tool that allows you to track employee applications and utilize other MCM-related functions.
Corporate Executive Homepage
After logging in with your corporate login, you will see a list of options.
The “Start Here” button allows a user to set up an application for an employee, which begins the process described in the manager login section.
WOTC Online Applications Received by Location
Press the “Custom Pages” button on the homepage to see all activity corporation-wide. Entering a date range at the top of the screen narrows your results, providing a list of employees, their work start date, and whether they completed the appropriate WOTC forms.
To download this form as a spreadsheet, clicking the link at the top of the page labeled “Download spreadsheet version here.”
Once finished, click the “Return to Main Menu” button to return to the home page.
Best Practices
To make sure you get the most out of your McKenzie Chase WOTC tax credit program, be sure to follow these approaches:
- There are no wrong answers. Assure employees that their best guess is all that is needed on the screening worksheet.
- Be sure to ask every employee to complete the WOTC forms.
Contact
If you have any questions about the WOTC process, please call MCM at (866)547-8277 or by e-mail at service@mckenziechase.com