Military Spouse Hiring Act – US House Sponsorship Changes Hands
In a press release today, U.S. Representative Don Beyer (D, VA) announced he has assumed primary sponsorship of the Military Spouse Hiring Act. Former Representative Antonio Delgado (D, NY) introduced the current version of the bill but has now left the House of Representatives to serve as New York’s Lieutenant Governor.
Read the press release here.
The Military Spouse Hiring Act proposes an expansion of the Work Opportunity Tax Credit or WOTC. This bill would expand WOTC by adding a new target group known simply as “Qualified Military Spouse.”
To qualify, an eligible employee must (in the usual way) be “certified . . . as being (as of the hiring date) a spouse of a member of the Armed Forces of the United States.”
The bill does not address the meaning of “spouse,” but this term generally means an individual who is lawfully married. If passed, it will create the first WOTC target group to specifically benefit active military families.
This new target group would provide a $2,400 tax credit.
(more…)
- Published in Work Opportunity Tax Credit
Is Your Covid-19 Tax Refund Feeling Abandoned and Lonely?
Don’t cry. We can make it better!
Many employers are unaware they are eligible for special tax relief created for the covid-19 pandemic. The covid-19 Employee Retention Credit (ERC) is worth up to $26,000 per employee when a business qualifies. That means, for example, that a small business with 10 employees could qualify for up to $260,000. It sounds like a lot (and it is), but it’s also realistic.
ERC is a fully refundable tax credit. That means if you qualify, you receive a tax refund check from the U.S. Treasury.
There’s still hope if you didn’t claim your ERC tax credit during the pandemic (between March 2020 and December 2021). For a limited time, you can claim it retroactively as a tax refund by amending your 2020 and 2021 payroll tax returns.
(more…)
- Published in Employee Retention Credit
Military Spouse Hiring Act Would Expand WOTC Target Groups
United States Senators have renewed an effort to pass the Military Spouse Hiring Act, an expansion of the Work Opportunity Tax Credit or WOTC. This bill would expand WOTC by adding a new target group known simply as “Qualified Military Spouse.”
To qualify, an eligible employee must (in the usual way) be “certified . . . as being (as of the hiring date) a spouse of a member of the Armed Forces of the United States.”
The bill does not address the meaning of “spouse,” but this term generally means an individual who is lawfully married. If passed, it will create the first WOTC target group to specifically benefit active military families.
This new target group would provide a $2,400 tax credit.
(more…)
- Published in Work Opportunity Tax Credit
Congress Proposes Big Increase of Work Opportunity Tax Credit
This month, the House Ways and Means Committee released tax proposals that may eventually be included in the massive budget reconciliation bill currently making its way through Congress. For a general summary, check out this article in the Journal of Accountancy.
Our interest here is the proposal for a temporary expansion of the Work Opportunity Tax Credit (WOTC). The legislation replaces just a few key terms in the Internal Revenue Code, where the WOTC program is defined. Yet, the effect would be very valuable for employers who participate in the WOTC program.
(more…)
- Published in Work Opportunity Tax Credit