Make WOTC and Other Credits Refundable
Image of Senator Rob Portman of Ohio
According to a recent article published by Law360, some members of Congress are considering making general business tax credits, including the Work Opportunity Tax Credit (WOTC), refundable. The change would likely be temporary, as a contribution to COVID 19 recovery efforts.
From the article:
“Sen. Rob Portman, R-Ohio, a senior member of the Finance Committee, said he and other Republicans were looking into the idea of allowing a business to receive a refund, or cash payment. It would be equal to the business’ so-called general business credit, which represents the cumulative value of various tax credits, which currently can be carried back for one year or carried forward over 20 years under Internal Revenue Code Section 39.”
Most tax credits are not refundable. You can use the tax credit up to a certain amount to offset taxes owed. The amount leftover is then reserved (or carried forward) to be used against tax owed next year. If, however, a tax credit becomes refundable, then in essence it can be filed for a cash payment from the government, even if no tax is owed.
Portman also suggested Congress may examine ways to make all of the various tax credits more appealing to businesses. “We can look at all of the credits. If you look, there are 38 of them,”
- Published in Work Opportunity Tax Credit
EEOC Approves Formal Opinion Letter About WOTC
This image includes members of the Equal Employment Opportunity Commission – Victoria Lipnic, Janet Dhillon, and Charlotte Burrows.
Hello friends!
Today at approximately 2:00 PM Eastern, the U.S. Equal Employment Opportunity Commission (EEOC) voted to publish a new formal opinion letter clarifying that the proper use of IRS Form 8850 does not violate any of the anti-discrimination laws enforced by the EEOC.
IRS Form 8850, titled “Pre-Screening Notice and Certification Request for the Work Opportunity Credit” is a document employers must acquire from new employees “on or before” the day of their job offer, to qualify for the Work Opportunity Tax Credit. View the form here. Because this form inquires into an employee’s date of birth and disability, some employers express concern about potentially violating laws that prohibit such inquiry prior to making the hiring decision.
The bottom line is that proper use of IRS 8850 is not a violation of the Civil Rights Act or the Americans with Disabilities Act (ADA).
(more…)
- Published in Work Opportunity Tax Credit
COVID-19 Will Pass, Be Prepared
Hello friends,
These are unexpected and difficult days. You’re very fortunate if Covid-19 has not disrupted your job or your workplace to some degree. Our office is experiencing the same kind of challenges.
Many people are working from home. If that’s an option in your industry, it’s a great blessing. These circumstances are forcing many of us to learn new ways to get it all done. When the Covid-19 contingencies are over, some industries will almost certainly choose to continue the work-from-home trend.
For now, however, many enterprises have little choice but to lay off workers. Millions of people are (at least temporarily) losing their jobs. It’s painful. It’s scary. But don’t lose hope because . . .
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- Published in Work Opportunity Tax Credit
DOL Accepting Comments for Revising WOTC Forms – Let Your Comments Be Heard!
If you’ve ever struggled through completing Work Opportunity Tax Credit (WOTC) forms with an employee, you have surely also thought, “There must be a simpler way.” Maybe you’ve even had a good idea for making it better. Now is the time to make your voice and opinions heard!
The U.S. Department of Labor is now accepting public comments for revising a variety of WOTC-related forms.
(more…)
- Published in Work Opportunity Tax Credit
Tax Extenders Are In! WOTC (and beer) Made the List!
Photography by Magda Ehlers.
After a long weekend and late nights of negotiations, Congress has agreed upon an end-of-year tax package that includes long-awaited tax extenders.
The Taxpayer Certainty and Disaster Tax Relief Act of 2019 extends the Work Opportunity Tax Credit (aka WOTC) another year, through December 31, 2020. Empowerment Zone tax benefits, which expired in 2017, have been retroactively renewed for 2018, 2019, and 2020.
A few additional renewed tax incentives that may interest our readers include:
(more…)
- Published in Work Opportunity Tax Credit
Tax-Free $35 Billion Industry – Giving Tuesday Update
The Work Opportunity Tax Credit (or WOTC) is our primary mission at WOTC Planet. However, as parents and as members of communities, we are also very concerned about the welfare of our children.
Last week I shared with you the heart-wrenching truth about child sex-trafficking in the United States. I also told you about Operation Underground Railroad — one of the most forceful organizations on the planet dedicated to ending child slavery. Operation Underground Railroad rescues thousands of children while helping law enforcement put the criminals behind bars.
To see last week’s post, click here.
Today is our chance to make an extraordinary difference.
Continue reading below >>
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- Published in Operation Underground Railroad
Veterans Back to Work Act of 2019 Would Make WOTC Permanent
Last week on November 21, Republican Representative Ron Wright of Texas introduced H.R.5250 to the House Ways and Means Committee. H.R.5250 is the Veterans Back to Work Act of 2019
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- Published in Work Opportunity Tax Credit
Tax-Free $35 Billion Industry – Selling Children
Today’s post is not what you expect. I hope you’ll read it until the end.
I can tell you about a $35 billion industry that is 100% tax-free. Are you interested?
This industry serves millions of customers every day. One or more suppliers are probably operating in your neighborhood, and somebody living down the street from you is buying.
What is this mysterious industry? My answer will shock you. I’m talking about the buying and selling of children for sex. It’s child sex slavery. And we must fight to save these children.
Now please, before you turn away in disbelief or with nausea and disgust, I’m begging you to keep reading. There are easy ways we can help. It requires bravery and willingness to learn some painful truths. The people at WOTC Planet have decided to fight, and there’s a way you can join us.
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- Published in Operation Underground Railroad
It’s Time for Congress to Reauthorize WOTC
Maybe you’ve heard that the Work Opportunity Tax Credit (aka WOTC) is slated to expire on December 31, 2019. And that makes you nervous.
But should it?
Forty years of productive history suggest that WOTC will still be around for years to come.
WOTC is part of the U.S. tax code. Like dozens of similar code provisions, Congress wrote it in a way that requires them to revisit the program from time to time. The upcoming expiration date signals that the moment has arrived again.
Has it happened before? Yes. Many times.
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- Published in Work Opportunity Tax Credit
Something Valuable Could Be Missing from Your Hiring Checklist.
Most human resources departments use a checklist when hiring new employees. Lists are so important, whether they are printed on paper or managed electronically by a paperless onboarding system. Lists help us to consistently and fairly walk new workers through a litany of important tasks.
Is there something important missing from your hiring checklist?
Keep reading to find out.
- Published in Marketplace Partner, Work Opportunity Tax Credit