Benefits for Employers

The services provided by our Employment Resource Center are available at no cost to you. By working with us you can:

• Significantly reduce costs for employee training and recruiting
• Gain access to a ready, pre-screened pool of prospective employees
• Receive customized staff education
• Have assistance with managing a diverse workforce
• Earn a Work Opportunity Tax Credit (WOTC)
• Be in compliance with the Americans with Disabilities Act (ADA)

If you are an employer ready work with us, or if you’d like more information call our Employment Resource Center at 423.624.4800 (option 4 or ext. 120).

FAQs: The WOTC and ADA

WOTC

What is the WOTC?

This tax credit is available to employers who hire certain low-income groups including vocational rehabilitation referrals, former AFDC recipients, veterans, food stamp recipients, summer youth employees, and SSI recipients.

How does hiring a disabled person help me meet the WOTC requirements?

Employees hired through AIM Center are vocational rehabilitation (VR) referrals. A VR referral is certified by the State Employment Security Agency (SESA) as:

• Having a physical or mental disability that is a hindrance to employment
• Being referred to an employer upon completion of, or while receiving, rehabilitative services (pursuant to the Vocational Rehabilitation Act of 1973, as amended)

What is the amount of the credit?

The credit is up to 40% of the first $6,000 (or up to $2,400) in wages paid during the first 12 months for each new hire who works at least 400 hours. A partial credit of 25% is available when certified employees work at least 120 hours, but less than 400 hours.

How does my company file for the WOTC?

You must complete and submit IRS Form 8850, "Pre-Screening Notices and Certification Request for the Work Opportunity and Welfare-to-Work Credits," to your local SESA.

How do I get the required IRS Form 8850?

We can give you copies of this form upon request and can assist you with its completion. You can also call your local SESA WOTC Coordinator.

How does the WOTC filing process work?

On or before the day employment is offered, you and the employee must sign the Pre-Screening Notice. It must be mailed to the SESA within 21 days after the employee begins work. You will document the employee’s eligibility (based on information given to you by the employee) and submit the documentation to the SESA.

SESA certifies which individuals are eligible for WOTC, and will notify you in writing for purposes of filing the tax credit.

ADA

What is the ADA and who is protected by it?

The ADA prohibits you from discriminating against a qualified disabled candidate. It does not interfere with your right to hire the best-qualified applicant and it doesn’t impose any affirmative action obligations.

Under the ADA, a person has a disability if he or she:

• Has a physical or mental impairment that substantially limits a major life activity
• Has a record of a substantially limiting impairment
• Is regarded as having such an impairment

A disabled person must be qualified to perform the essential functions of the job to be protected by the ADA. So, the applicant must: a.) satisfy your job requirements for educational background, employment experience, skills, licenses, and any other qualification standards that are job related, and b.) be able to perform those tasks that are essential to the job, with or without reasonable accommodation.

Under the ADA, what are reasonable accommodations?

A reasonable accommodation is any adjustment to work environment that permits a qualified disabled applicant or to participate in the job application process, perform the essential functions of a job, or enjoy benefits and privileges of employment equal to those without disabilities.

You aren’t required to provide accommodations if doing so would cause an undue hardship. Undue hardships are those that are unduly costly, extensive, substantial, disruptive, or would fundamentally alter the nature or operation of your business.