New WOTC Target Group – Long Term Unemployment Recipient

The recent re-authorization and expansion of the Work Opportunity Tax Credit (WOTC) includes a new WOTC target group.  Reading from the statute, a “Long-term Unemployment Recipient” is defined as an individual “being in a period of unemployment which— (A) is not less than 27 consecutive weeks, and (B) includes a period in which the individual was receiving unemployment compensation under State or Federal law.’’
In plain English? To qualify, your new employee must (1) have been unemployed for at least the past 27 weeks; and (2) he or she must have received unemployment compensation at some point during that time period.
This new target group applies only to employees hired after December 31, 2015.  The IRS has not yet issued guidance or provided any further interpretation of the new law.  It’s not yet clear what if any documentation will be required to demonstrate an employee’s eligibility.

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