EMPLOYERS SHOULD CERTIFY EMPLOYEES BEFORE CLAIMING THE WORK OPPORTUNITY TAX CREDIT:

Giving someone a work opportunity may translate into a business tax credit for your client and greater stability for a family. The Work Opportunity Tax Credit (WOTC) encourages employers to hire workers certified as members of any of the 10 groups facing barriers to employment. When hiring, encourage your clients to review eligibility requirements for the WOTC:

• Pre-screening and certification requirement - to claim the credit, an employer must first get certification that an individual is a member of one of the specified groups by submitting IRS Form 8850, Pre-screening Notice and Certification Request for the Work Opportunity Credit, to their state workforce agency within 28 days after the eligible worker begins work.
• Figuring and claiming the credit - after the employer receives Form 8850 certification, they figure the credit on Form 5884, Work Opportunity Credit, and then claim the credit on Form 3800, General Business Credit.

For more information, visit the Work Opportunity Tax Credit webpage on IRS.gov.