The South Dakota Department of Labor and Regulation (DLR) administers the federal Work Opportunity Tax Credit (WOTC) program. Its goal is to assist job seekers who have barriers to employment gain the skills and experience needed to become self-sufficient in life.
By hiring one of these job seekers, you as an employer can earn a federal income tax credit of approximately $2,400. It is possible to earn as much as $9,000 over a two-year period of time depending on the target group. The WOTC program has proven to be a win-win situation for both employers and job seekers alike. South Dakota employers have saved millions of tax dollars each year.
There is little paper work involved with the program. The employer needs to complete the Internal Revenue Service IRS-8850, along with a U.S. Department of Labor ETA-9061 Individual Characteristics form. Both must be completed within 28 calendar days of the new employee’s start date of employment, then submitted to the state WOTC Coordinator Peggy Carrico for approval. She can be reached at 605.626.7652 ext.4415 or Peggy.Carrico@state.sd.us. For more information, visit our website, dlr.sd.gov/wotc.
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