December 21, 2015

5-year WOTC Extension Announced

It’s official! The Work Opportunity Tax Credit (WOTC) program has been renewed for five years (2015 – 2019). Last week, Congress voted to extend the WOTC program as part of the Tax Extenders legislation, and received the President’s official signature of approval on December 19th.

This renewal is especially exciting as it is the first time in it’s history WOTC has received a 5-year renewal which is a testament to it’s success. Secondly, Congress has added a new target segment for Long Term Unemployed Recipients, which can qualify more of your employees and increasing your potential tax credits.
Here is the actual wording from the bill:

The term ‘qualified long-term unemployment recipient’ means any individual who is certified by the designated local agency as being in a period of unemployment which is not less than 27 consecutive weeks, and includes a period in which the individual was receiving unemployment compensation under State or Federal law.

This is precisely what employers have been waiting on all year. In a nutshell, the program provides participants tax credits up to $2400-9600 for each qualified, new hire brought on board. This renewal is a solid investment in the American dream and provides work opportunities for millions while providing businesses the capital to expand their businesses that will create even more jobs.

It doesn’t take long to figure out that this program can be a great way for companies to invest in their growth by significantly reducing their tax liability. To learn how much your potential tax savings might be, try our tax savings calculator here.

July 24, 2015

WOTC Renewal Update

The Work Opportunity Tax Credit (WOTC) program scored a big victory this week. On 7/21/15, the Senate Finance Committee voted 23-3 to pass a two-year extension of this important program. This means that the bill is now ready for a full Senate vote. Although this is only the first step, the near-unanimous support for WOTC legislation marks a huge step forward in a program which has awaited renewal since December 2014.

WOTC is an employment incentive to reward businesses who hire from several target groups that historically have faced barriers to employment. The tax credit awards businesses up to $2400-9600 for each eligible new hire. Applications must be received within 28 days to state workforce agencies.

We strongly advocate for this program as it has served American companies well. WOTC has helped businesses save thousands annually in tax liability. Moreover, it expands opportunities for job candidates most in need.

The program has passed one gateway and is en route for a Senate vote. We will keep you posted as new developments take place.

April 10, 2015

TANF: A primary component of WOTC tax credits

The WOTC program includes many target groups. Among these are TANF (Temporary Assistance for Needy Families) recipients, or qualifying persons receiving financial assistance. It’s highly likely that you may have hired a TANF beneficiary and not have known it. According to USDA statistics, in fiscal year 2014, SNAP recipients represented over $3 billion in available tax credits.

With the volume of TANF recipients in this country, you’ve probably hired untold numbers which met WOTC qualifications. Did you know that during the 2014 calendar year that nearly 36 million Americans received this aid? Since the 2007 recession, the number of families that have qualified for this financial assistance grew by 50%.

TANF is a financial assistance program for low income families that have children and for pregnant women in their last three months of pregnancy. The program provides temporary financial assistance while at the same time helps TANF recipients find jobs that will allow them to support themselves.

Hiring a TANF recipient could earn you up to $2,000 in tax credit for each new candidate. There are different qualifications for Long-Term and Short-Term recipients.

Long-Term Temporary Assistance for Needy Families (TANF) Recipient
To qualify for this target group, a new hire must be a member of a family that meets one of the following circumstances:

Has received TANF benefits for at least 18 consecutive months ending on the hiring date; OR
Has received TANF benefits for at least 18 consecutive or non-consecutive months after August 5, 1997, AND has a hiring date that is not more than 2 years after the end of the earliest 18-month period after August 5, 1997; OR
Has stopped being eligible for TANF payments during the past 2 years, because a Federal or state law limited the maximum time those payments could be made.

Short-Term TANF Recipient
A new hire qualifies for this target group, if the individual is a member of a family that received TANF benefits for any 9-month period during the 18-month period ending on the hiring date.

It’s important to note that State workforce departments must receive requests within 28 days of new hires’ start dates.

The great news is these people are easier to identify than you thought possible. By taking advantage of these, and making minor tweaks in your hiring process, you could save thousands in tax dollars. Give us a call at 563-583-2115 to learn how to get started or you can find out how much you have been missing in tax savings by using our free calculator HERE.

March 29, 2015

2014 WOTC Tax Extension Reminder

With tax deadlines looming, we thought it best to revisit the specifics of WOTC for 2014 and what implications that has on your corporate taxes.

A quick reminder that for 2014 you can file for WOTC tax credits by April 30, 2014. With this unique extension, states are backlogged and may require extra time to issue your credits.

For this reason many companies filed for an extension on their corporate taxes in order to easily allocate their 2014 WOTC credits once issued.

For the 2014 tax credits they must be applied in the following order.

2014 Tax liability
2013 Tax liability
Carry forward to the next year of liability (up to 20 years)

If you didn’t file an extension, you will still be able to file an amended return once your state has issued all tax credits for 2014.

You’ll want to make sure you discuss this with your tax preparer to make sure you properly claim your credits.

March 10, 2015

SNAP: A Huge Part of WOTC Tax Credits

The WOTC program includes many target groups. Among these are SNAP (Supplemental Nutrition Assistance Program) recipients, or persons receiving food stamps. It’s highly likely that you may have hired a SNAP recipient or member of a qualified household. According to USDA statistics, in fiscal year 2014, SNAP recipients represented over $10 billion in available tax credits.

With the volume of SNAP recipients in this country, you’ve probably hired untold numbers which met WOTC qualifications. Did you know that roughly one in seven Americans receives this aid? Since the recession, food stamp recipients grew to over 23 million households. The number of children benefiting from the program has nearly doubled to over 15 million since the 2007 recession. All across the country, rural and urban citizens receive food stamps temporarily and long-term.

Hiring a SNAP beneficiary could earn you up to $2400 in tax credit for each new candidate. Qualified candidates must be between 16-39 years old and not have worked for your company before. State workforce departments must receive requests within 28 days of new hires’ start dates.

1 … 5 6 7