IRS Form 8850, Pre-screening Notice and Certification Request for the Work Opportunity Credit, is a formal instrument prepared by employers to apply for a specific tax credit they qualify for by hiring employees from targeted groups.
Let your state authorities know you are going to employ a person that qualifies for a work opportunity credit and certify their eligibility to receive certain benefits as a member of the targeted group - as a result, your entity will be able to claim a tax credit while helping your employee.
This document was issued by the Internal Revenue Service (IRS) on March 1, 2016 - older editions of the request are now obsolete. You can download an IRS 8850 fillable version below.
American companies are encouraged to offer jobs to people that have had major obstacles when it comes to employment. Whether the job candidate was discharged from active duty because of a disability that does not allow them to continue their military service, they were released from prison, or their family qualified for a food assistance program, the employer has a chance to offer jobs to people that have struggled financially as well as secure a tax credit for their own organization.
In order to inform the authorities about the hiring, you have to fill out and file IRS Form 8850 with the state agency that assists people with their employment where your company operates.
Follow the Form 8850 Instructions to ensure your employee confirms their targeted member status and qualify for a work opportunity credit:
Provide personal and contact details of the employee. Note that the first page of the form must be filled out by the future employee certifying information that will qualify them for the work opportunity credit. The job applicant must state their full name, social security number, current residential address, phone number, and birth date - the latter field has to be completed only if the person is younger than forty.
Scan through the statements listed on the form and check the boxes that apply to you. These claims will allow you to confirm your targeted group status whether you already received relevant certification, your family received food stamps, you were entitled to receive supplemental benefits over the past two months, or you are a veteran eligible to be compensated for a disability incurred during military service. Several of the statements mention unemployment - one of the primary reasons for the work opportunity credit to exist is to help out people that have been out of work for a considerable amount of time.
Sign and date the form verifying the information you put in writing is true and accurate. Once you are done with your section of the document, give it to the employer. The representative of the entity will indicate the name of the company, its contact details, and the employer identification number. It is also mandatory to enter the name and contact information of the person that will deal with the upcoming correspondence if their details differ from the ones listed above. If the job applicant fits the profile of a designated community resident or can work as a summer youth employee, write down the number 4 or 6 respectively in the appropriate field. Specify when the applicant identified in the form disclosed the information put in the request, received a job offer, was formally hired, and began working for your organization. Sign the paperwork, enter the actual date, and include your job title.
While the form is filled out during the job application process, the employer has to submit the documentation to the state workforce agency within twenty-eight days after the first working day of the individual in question. Reach out to the agency to find out whether they will accept an electronic version of the form or you have to file papers by fax - you are not obliged to send the request to the IRS since it is the duty of the workforce agency to inspect the document.