for Employers

The One Stop Career Centers in Nebraska are a partnership of the Nebraska Workforce Development, Department of Labor (NWD-DOL) and the Workforce Investment Areas. In many areas, other human service agencies and community based organizations are involved. These agencies work primarily with persons who have a good chance of being members of one of the WOTC target groups.

As an employer, you can advertise your job openings with your local One Stop Career Center. Ask them to refer you WOTC-eligible applicants from the qualified applicant pool.

The Work Opportunity Tax Credit (WOTC) program gives State Workforce Agencies (SWA) authority to issue Conditional Certifications.

A Conditional Certification is a preliminary determination issued by an agency authorized by SWA that an applicant is a member of a WOTC target group.

A Conditional Certification may be a useful tool for a person seeking employment. The Conditional Certification (ETA 9062) attests that the person listed on the document may be a member of a WOTC target group. The agency or applicant may present this signed form to a potential employer and, if that person is hired, the employer may be eligible for the tax credit. Authorized agencies may download the ETA 9062 form from this website.

The WOTC Office does the final verification.

Currently, the following agencies are authorized to issue Conditional Certifications:

• Vocational Rehabilitation Services
• Nebraska Commission for the Blind and Visually Impaired

The NWD-DOL has also entered into non-financial cooperative agreements with the following entities:

• Lincoln Workforce Development
• Nebraska Department of Corrections

On average, the WOTC Office receives 250 applications per week. Each application is verified to ensure it is complete, timely, and meets the eligibility criteria for the target group before a letter of certification or a letter of denial is issued.

The Nebraska WOTC Office has eliminated the red tape for employers by requiring minimal documentation to be submitted with the application. The WOTC Office has online access/contact person to verify the following target groups.

• AFDC / TANF / Long-Term Family Assistance Benefits
• Food Stamp Benefits
• SSI Benefits
• Ex-felon Status in the State Correctional System
• Vocational Rehabilitation Client eligibility
• Verification of Age
• Out-of-state welfare benefits received for AFDC/TANF and Food Stamps

Additional documentation may be required for the following criteria, along with Forms 8850 and ETA 9061:

• Proof of Veteran Status (e.g., DD214), Disabled Veteran Status
• Proof of age, only if no Nebraska driver's license available [copy of driver's license, birth certificate, ID card with birth date (Note: Form I-9 cannot be accepted as proof of age)]
• Proof of residence (e.g., utility bills, copy of W-4, etc.)
• Out-of-state welfare benefits received for AFDC / TANF, Foods Stamps, SSI, Vocational Rehabilitation, and Felony Conviction

Under the WOTC program, there are nine target groups:

Qualified IV-A Recipients are those applicants who have received qualified IV-A benefits (AFDC) for any nine (9) months within the corresponding 18 months ending on the hire date.

Qualified Veterans receiving Food Stamps are veterans who meet the qualifications regarding the length of service time (180 days) and who have received Food Stamp benefits for at least three (3) months of the last fifteen (15) months ending on the hire date; Veterans entitled to compensation for a service-connected disability and, during the past year were discharged or released from active duty in the U.S. Armed Forces, or unemployed for period(s) totaling at least 6 months.

Qualified Ex-Felons refer to economically disadvantaged felons who have a conviction or a release date within one (1) year of their hire date.

Designated Community Residents include individuals who have attained age 18 but not 40 on the hiring date, and those who’s principal place of abode (residing) within an Empowerment Zone (EZ), Enterprise Community (EC), Renewal Community (RC) or Rural Renewal County (RRC). There are no EZ, EC or RC in Nebraska. There are 36 Nebraska counties designated as RRC: Antelope, Banner, Boone, Box Butte, Boyd, Burt, Cedar, Chase, Duel, Dundy, Fillmore, Franklin, Garden, Garfield, Greeley, Hayes, Hitchcock, Holt, Jefferson, Johnson, Logan, Nance, Nemaha, Nuckolls, Pawnee, Perkins, Red Willow, Richardson, Rock, Sheridan, Sherman, Thayer, Thomas, Valley, Webster and Wheeler.

Vocational Rehabilitation Referrals are individuals referred to the employers from qualified state vocational rehabilitation or Veterans Administration Programs.

Qualified Summer Youth Employees are new employees who are 16 or 17 years of age, residing within a qualified empowerment zone or enterprise community and employed within May 1 and September 15.

Qualified Food Stamp Recipients are 18 to 39 years old individuals who have either received food stamps for the last consecutive six (6) months, or received food stamps for at least three (3) of the last five (5) months but are no longer eligible and are Able Bodied Adults Without Dependents (ABAWD).

Qualified SSI Recipients are those applicants who have received Supplemental Security Income Benefits under Title XVI of the Social Security Act for any month ending within the 60-day period ending on the hire date.

Long Term Family Assistance (LTFA) Recipients target group is designed to limit the number of AFDC/TANF payments and move the recipients into employment. The applicant must be a member of a family that has received AFDC/TANF benefits for at least 18 consecutive months ending on the date of hire; or who have received AFDC/TANF benefits for a total of 18 months, beginning after August 5, 1997, for applicants hired within two years after the end of the 18-months of assistance; or those whose AFDC/TANF eligibility expired under a Federal or State law after August 5, 1997, for applicants hired within two years after the date that this eligibility expired.

• Pre-Screening Notice and Certification Request Form (IRS 8850)
• Individual Characteristics Form (ETA 9061)

The maximum tax credit for WOTC (for all target groups except Disabled Veterans and Long Term Family Assistance Recipients) is $2,400 per new hire.

a. Workers employed 400 hours or more:
The employer may claim a tax credit of 40 percent of the worker’s first year earnings, not to exceed $6,000, for a maximum credit of $2,400, for workers employed at least 400 hours.

b. Workers employed 120 – 400 hours:
The tax credit is reduced to 25 percent of the workers’ first year wages, not to exceed $6,000 for a maximum credit of $1,500, for workers employed less than 400 hours but for a minimum of 120 hours.

Tax Credits for Disabled Veterans (Effective May 26, 2007):

First Year credit can be as much as: 1) $3,000 i.e., 25% of up to $12,000 (for individuals working at least 120 hours) or; 2) $4,800 – i.e., 40% up to $12,000 (for individuals working 400 hours or more).

The maximum tax credit for the Long Term Family Assistance Recipients (LTFA) target group is $9,000 (over two years).

First Year Tax Credit:
$4,000 i.e., 40% of qualified wages for the first year, not to exceed $10,000.
Second Year Tax Credit:
$5,000 i.e., 50% of qualified wages for the second year, not to exceed $10,000

To claim the WOTC tax credit, the employer must request and be issued a certificate for each employee from the Nebraska Workforce Development, Department of Labor (NWD-DOL). The certificate proves that the employee is a member of a targeted group.

You will need IRS Form 5884 to claim the WOTC tax credit. These forms are available at your local IRS Office. Links to these forms are available on our web site.

The tax is a federal income tax credit. You file for the credit when you fill out your annual Business Federal Income Tax Forms.