Bank Statement for the Work Opportunity Tax Credit

The Work Opportunity Tax Credit (WOTC) rewards employers who hire from targeted groups facing barriers to employment — veterans, long-term unemployed, and others. After certifying the employee's eligibility, the credit is based on qualified wages paid, which bank statements document. This guide covers the wage-substantiation side of a WOTC claim.

Key Benefits

• Documents the qualified first-year wages the credit is based on
• Supports the hours-worked thresholds that set the credit percentage
• Provides payroll evidence alongside the certified eligibility form
• Helps calculate the credit across multiple qualifying new hires

How It Works

1. Step 1: Confirm the new hire's eligibility certification through your state workforce agency
2. Step 2: Download payroll bank statements covering the qualified wage period as PDFs
3. Step 3: Convert them to Excel with Bank Statement Converter to total wages per qualifying employee
4. Step 4: Provide the wage totals to your accountant to calculate the WOTC on Form 5884

Frequently Asked Questions

How is the Work Opportunity Tax Credit calculated?

As a percentage of qualified first-year wages, up to a cap that varies by target group — the percentage depends on hours worked, and bank statements document the wages paid.

Which employees qualify an employer for WOTC?

New hires from targeted groups including certain veterans, long-term unemployment recipients, SNAP recipients, ex-felons, and others — each certified through the state workforce agency.

Why do bank statements matter for WOTC?

The credit is based on actual wages paid to the qualifying employee, so payroll bank statements substantiate the wage figures behind the credit amount.

What is the deadline to claim WOTC?

Employers must submit the certification request (Form 8850) to the state workforce agency within 28 days of the employee's start date — the wage documentation supports the later credit claim.

Convert Your WOTC Statements