Form 8850: Pre Screening Notice Certification Request For Work Opportunity Credit

Federal Form 8850, also known as the "Pre-Screening Notice and Certification Request for the Work Opportunity Credit," is a document used by employers in the United States to initiate the process of claiming the Work Opportunity Tax Credit (WOTC).

What is the Work Opportunity Tax Credit (WOTC)?

The WOTC is a federal tax credit program that incentivizes businesses to hire individuals from targeted groups facing significant employment barriers. By employing qualified individuals, employers can earn tax credits to reduce their federal tax liability.

What's the Purpose of Form 8850?

Employers use Form 8850 to achieve two primary goals:

Pre-screening: This initial step allows employers to gather information from potential hires to determine if they belong to a WOTC-eligible targeted group.

Certification Request: Once a potential employee seems to qualify, employers submit Form 8850 to their state workforce agency (SWA) to officially certify the individual's eligibility for the WOTC program.

Who Uses Form 8850?

Businesses seeking tax credits for hiring individuals from targeted groups must use Form 8850.

Who Completes Form 8850?

The job applicant fills out the relevant sections of Form 8850, indicating their potential eligibility for a targeted group.

Who Submits Form 8850?

Once completed, employers submit Form 8850, along with any additional state-specific forms, to their designated SWA within 28 days of the new hire's start date. The SWA will then review the information and determine the applicant's eligibility for WOTC certification.

When should I complete Form 8850?

Form 8850 should be completed before a job offer is made to a potential new hire. This ensures the employer can determine WOTC eligibility before extending an offer.

Where do I submit Form 8850?

Once completed, Form 8850, along with any required supporting documents, should be submitted to the employer's state workforce agency (SWA).

What happens after submitting Form 8850?

The SWA will review the application and determine if the new hire qualifies for the WOTC program. If approved, the employer will receive a certification from the SWA.

How do I claim the Work Opportunity Tax Credit?

After receiving WOTC certification for a qualified employee, employers can claim the tax credit on their federal tax return using specific IRS forms.