Learn About Tax Credits and Incentives

Work Opportunity Tax Credit

The Georgia Department of Labor (GDOL) coordinates the federal Work Opportunity Tax Credit Program (WOTC). The program is a federal tax credit available to employers who hire and retain eligible individuals from certain targeted groups with significant barriers to employment. Employers claim about $1 billion in tax credits each year under the WOTC program.

WOTC reduces an employer's cost of doing business by decreasing their federal income tax liability between $1,200.00 and $9,600.00 per employee, depending on the target group identified and hours worked during the first year of employment. For employers to earn the tax credit, the new employee must work at least 120 hours during the first year of employment and have not worked previously for the employer. Employers can claim the WOTC on an unlimited number of qualified employees each year.

GA WOTC Online Portal

Employers

Register for an account at the GA WOTC Employer Portal. You will receive a confirmation email upon approval.

Upon approval, log in to enter your WOTC applications, upload supporting documentation, check application status, and print determinations once the application has been processed.

By submitting your application electronically, you are the designated legal forms holder and must maintain original signature documents (IRS Form 8850, ETA Form 9061), any supporting documentation, and certification letters received from the GA WOTC Coordinator. Please read the following for the IRS recordkeeping retention period, Instructions for Form 8850 (03/2021) | Internal Revenue Service.

As the legal forms holder, you are authorized to enter data from the original signature documents and submit this information electronically to the Georgia WOTC Program. 

Consultants

Consultants submitting WOTC applications on behalf of an employer must have a completed Form 9198 (Employer Representative Declaration Form) on file, before entering applications per USDOL TEGL 16-20, change 1, effective 10/1/2024.

Form 9198 can be uploaded through the GA WOTC Consultant Portal for staff review and approval. Please email us using the WOTC Email Form to inquire about establishing a new Consultant account and portal access or existing consultants inquiring about the Bulk Upload process.

How to Apply for WOTC Certification

Employers

1. Complete the IRS Form 8850, "Pre-Screening Notification and Certification Request".
2. Complete the ETA Form 9061, "Individual Characteristics Form."
3. Submit your completed and signed Forms 8850 and 9061 electronically within 28 calendar days of the new employee start date. Hard copies of Forms 8850 and 9061 are retained by employers for their records.

Optional: If mailing your WOTC applications, the postmarked date must be within 28 calendar days of the new employee’s start date. The mailing address is:

Georgia Dept of Labor
WOTC Unit
148 Andrew Young International Blvd. NE
Atlanta, GA 30303

Access WOTC Forms and additional program information  

IRS Form 8850 and instructions
USDOL ETA Form 9061
USDOL Form 9175
USDOL ETA Form 9198
IRS Form 5884
Georgia WOTC Flyer DOL-4468
US Department of Labor Employment & Training Administration
IRS Work Opportunity Tax Credit
WOTC Tax Credit Calculation Chart (For-Profit Employers)
WOTC Tax Credit Calculation Chart (Non-Profit Employer)

How to Claim the WOTC Credit

After receiving a certification, employers may file for the tax credit with the IRS. Generally, an employer elects to take the credit by filing IRS Form 3800 and IRS Form 5884. However, a tax-exempt organization that hires an employee in the WOTC veteran target group should use IRS Form 5884-C. Employers also must meet requirements for the Minimum Employment Period, which is the number of hours required to be worked by the employee – at least 120 hours in the first year of employment - before they can file and qualify for the tax credit.

Groups that Qualify for the Tax Credit

WOTC applies only to new employees; rehires do not qualify. The new employee must belong to one of the following target groups:

Temporary Assistance for Needy Family / Qualified IV-A recipients ($2,400): An individual who is a member receiving Temporary Assistance to Needy Families (TANF) for any 9 months during the 18-month period ending on the hiring date.

Veterans: To be considered a veteran, an applicant must: 1) Have served on active duty in the Armed Forces of the United States for a period of more than 180 days, or have discharged or released from active duty for a service connected disability, and 2) Not have a period of active duty (not including training) of more than 90 days that ended during the 60-day period ending on the hiring date.

Qualified Veteran Categories

• Veteran/SNAP ($2,400): Received SNAP benefits for at least a 3-month period during the 15-months ending on the hire date.
• Unemployed Veteran/4 Weeks ($2,400): Unemployed for a period or periods totaling at least 4 weeks in the 1-year period ending on the hiring date.
• Unemployed Veteran/6 Months ($5,600): Unemployed for a period or periods totaling at least 6 months in the 1-year period ending on the hiring date.
• Disabled Veteran ($4,800): Entitled to compensation for a service-connected disability and is hired not more than 1 year after being discharged or released from active duty.
• Disabled Unemployed Veteran ($9,600): Entitled to compensation for a service-connected disability and was unemployed for a period or periods totaling at least 6 months in the 1-year period ending on the hiring date.

Recently released Ex-felons/ Qualified ex-felon ($2,400): An individual who has been convicted of a felony under any federal or state law, and is hired not more than 1 year after the conviction or release from prison for that felony.

Designated community resident ($2,400): An individual who is at least age 18 but not yet age 40 on the hiring date and lives within an empowerment zone (EZ) or rural renewal county (RRC). Currently, Randolph and Stewart counties are the only RRCs located in Georgia.

Vocational Rehabilitation referral ($2,400): An individual who has a physical or mental disability resulting in a substantial handicap to employment and who was referred to the employer upon completion of (or while receiving) rehabilitation services by a rehabilitation agency approved by the state, an employment network under the Ticket to Work program, or the Department of Veterans Affairs.

Summer Youth Employee ($1,200): Performs services for the employer between May 1 and September 15; AND is at least age 16 but not yet age 18 on the hiring date (or if later, on May 1); AND has never worked for the employer before; AND lives within an empowerment zone.

SNAP Recipient ($2,400): 18-39 years old on the hiring date, and received SNAP benefits for the 6-month period ending on the hiring date; or is no longer eligible for SNAP under section 6(o), but the family received SNAP benefits for at least 3 months of the 5-month period ending on the hiring date.

Supplemental Security Income/SSI recipient ($2,400): receiving supplemental security income benefits for any month ending during the 60-day period ending on the hiring date.

Long-term family assistance recipient ($9,000): received TANF payments for at least 18 consecutive months ending on the hiring date; or received TANF payments for any 18 months after August 5, 1997, and the earliest 18-month period beginning after August 5, 1997, ended during the past 2 years; or stopped being eligible for TANF payments because federal or state law limits the maximum period such assistance is payable and the individual is hired not more than 2 years after such eligibility ended.

Long-term unemployment recipient ($2,400): An individual in a period of unemployment that is not less than 27 consecutive weeks and includes a period in which the individual received unemployment compensation under state or federal law.

Who Does Not Qualify

A tax credit may not be claimed for:

• Relatives
• Individuals who have previously worked for the employer
• Federally subsidized, on-the-job training; however, wages paid after the subsidy expires can qualify for the credit
• A new employee who works less than 120 hours in the first year of employment

What are the benefits to the Employer

Take advantage of the WOTC program, and increase your return on investment while helping targeted employees become self-sufficient and earn a steady income.

• A $1,200 - $9,600 tax credit for each new hire meeting certification and working requirements
• Employers make the hiring decision
• No limit to the number of new hires who can qualify for the tax credit
• Minimal paperwork
• Electronic application

Contact Us

For questions, please email us using the WOTC Email Form.