What is WOTC

The National Employment Opportunity Network (NEON) is the leading national voice on hiring tax incentives. It has played a central role in the development and continuance of the Work Opportunity Tax Credit (WOTC) program. NEON has worked closely with the Internal Revenue Service (IRS), U.S. Department of Labor (DOL), and the State Employment Security Agency (SESA) to ensure the program and any modifications are administered in an efficient manner. NEON is comprised of Service Bureaus that assist employers to effectively manage the recruitment, and employment of WOTC eligible new hires who are on public assistance programs which include TANF (Temporary Assistance for Needy Families -welfare), SNAP (Supplemental Nutrition Assistance Program - food stamps), Supplemental Security Income (SSI), Recipients of Vocational Rehabilitation as well as Veterans, Ex-felons, and residents of Empowerment Zones. NEON members work collectively to promote the WOTC program which provides a modest tax incentive to employers for hiring individuals who qualify, but have little, if any, work experience and/or job skills.

NEON members work with employers to inform them of key program performance indicators such as higher retention rates for entry-level workers hired through WOTC and to understand that hiring tax incentive provides an offset to the extra costs to mentor and train eligible new hires to be successfully integrated into an employer's existing workforce. NEON members help employers to establish internal management practices that ensure compliance and in particular the timeliness requirements with completing IRS' pre-screening 8850 form as part of their job application process and to timely file the certification request with the State Workforce Agency (SWA).