WOTC FAQ'S

Question 1: What is an Enterprise/ Renewal Community?

Answer: Refers to an area or combination of areas designated by the U.S. Housing and Urban Development (HUD) and/or the U.S. Dept. of Agriculture (USDA) that meet certain population, size and poverty criteria.

The Enterprise Communities in WI are:

Question 2: Are Ticket-to-Work holders eligible?

Answer: Ticket-to-Work holders are eligible if they receive assistance in developing an Individual Work Plan (IWP) from a private Employment Network

Question 3: Are Division of Vocational Rehabilitation clients, who are on a waiting list, eligible?

Answer: Yes, as long as a Plan of Employment is written up by Job Service or a Partner Agency.

Question 4: Who determines which credit is to the employer's best advantage if employee is eligible for more than one target group?

Answer: The Employer's Tax Accountant

Question 5: Is documentation required along with the 9062 Conditional Certification Form? Is the 8850 form required with the 9062?

Answer: No documentation needs to be sent when a Conditional Certification (form 9062) is being sent in. The 8850 form still must be submitted and within the 28-day deadline. The 9062 form can only be used by Agencies with caseloads or with a contract with DWD.

Question 6: How does a non-partner agency receive authority to sign the Conditional Certifications?

Answer: They must enter into a written Cooperative Agreement with the Department of Workforce Development (DWD).

Question 7: How does the employer receive their credit?

Answer: The employer needs to file the certification along with the tax form 5884 with their Federal and WI income/franchise tax returns.

Question 8: Does this credit benefit the employee?

Answer: Yes. The credit can become an incentive for the employer to hire someone they may not otherwise have hired. Also, the employee may be eligible for the Earned Income Tax Credit and various State/local tax breaks.

Question 9: How long must records be retained?

Answer: Records that support these credits usually must be kept for 3 years from the date any income tax return claiming the credits is due or filed, whichever is later.

Question 10: How is documentation obtained?

Answer: Through the applicant and/or relevant Government or private non-profit agency.

Question 11: We hired an eligible worker but didn't know about the 28-day rule at the time, can you waive it?

Answer: No. Unfortunately the 28-day rule cannot be waived, because it is in the federal law.

Question 12: My application was denied by the state, and I believe the state should have certified my employee. Is there any way I can appeal the decision?

Answer: Yes. First, the State Tax Credit Office most frequently denies applications because it does not have paper documentation or an audit trail of the workers eligibility.

If additional documentation can be obtained the state will reverse its denial and award the tax credit.

If there is still a disagreement as to eligibility, there are two appeal levels: State Coordinators, then DOL Regional Coordinators.

Question 13: How can our business get help with claiming tax credit

Answer: Most One-Stop Job Centers have a Job Service expert on staff. It is their duty to get employers started by providing preliminary technical assistance. The Central Tax Credit Office coordinator and Certification Officers will provide back up as needed. Many State, County and private non-profit agencies or Job Center Partners have trained staff.

Question 14: Our company hires a lot of new people. Can we outsource tax credit preparation?

Answer: Yes. There are numerous private for profit consulting firms who will contract with a business to do paperwork for a fee. Some accounting firms also provide the same service, usually to client businesses.

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