Today, the IRS formally recognized that employers (and state workforce agencies) need more time to adjust to the WOTC-program changes initiated by the Protecting Americans from Tax Hikes Act of 2015.
This morning, the IRS issued Notice 2016-40, which extends transition relief for another three months. At about the same time, the Department of Labor also issued Training and Employment Guidance Letter Number 25-15, dealing with the same issues. (more…)
Deadlines Looming, WOTC Coalition Asks Treasury Department to Extend Transition Relief for 90 More Days
Paul Suplizio, President of the the Work Opportunity Tax Credit Coalition has authored an official letter to the Department of Treasury urging the Department to extend the time period granted for WOTC applications under Transition Relief.
IRS Notice 2016-22 provides Transition Relief for employers needing more time to process WOTC applications for employees hired in 2015 and early 2016. This relief was necessary because of Congress’ long delay in reauthorizing the WOTC program after it expired on December 31, 2014. (more…)
Investing in Older Workers Act of 2016 Would Increase WOTC Tax Credit Earned for Hiring Older Workers Suffering Long Term Unemployment
Representative Bonnie Watson Coleman of New Jersey has sponsored a bill to increase the amount of Work Opportunity Tax Credit generated by wages paid to older Long Term Unemployment Recipients.
This bill, known as the Investing in Older Workers Act, would increase the maximum qualifying wage from the current $6,000 to $14,000 for qualifying Long Term Unemployment Recipients who are age 55 or older. As a result, the maximum tax credit amount that could be generated by hiring an an older long-term unemployment recipient would increase from $2,400 to $5,600. (more…)
The IRS has issued a revision of IRS Form 8850 “Pre-Screening Notice and Certification Request for the Work Opportunity Credit.” This revision was made necessary by the recent Protecting Americans from Tax Hikes Act of 2015 (PATH Act), which added a new target group to the WOTC program. The form now includes a question to screen for Long Term Unemployment Recipients.
Question number 7 at the bottom reads: (more…)
I received a system-generated update from the Kentucky Work Opportunity Tax Credit Office this morning. If you have dealings with that office, perhaps you also received it.
It looks like the guidance provided in IRS Notice 2016-22 regarding the new WOTC Target Group (Long Term Unemployment Recipients) might be a little obsolete already. Here’s the language I received this morning. (more…)
IRS Notice 2016-22 can now be found on the IRS website through a Google search. Click the link to get your copy.
In a nut shell, for employees hired from January 1, 2015 through May 31, 2016 (inclusive), the usual 28-day application deadline has been extended through June 29, 2016. That’s good. (more…)
This week, the Department of Labor’s Employment and Training Administration issued new instructions to State Workforce Agencies (SWA’s). Agencies needed instructions in the wake of the WOTC re-authorization provided by the Protecting Americans From Tax Hikes (PATH) Act of 2015. President Obama signed this bill on December 18, 2015.
The document summarizes the program changes and other effects created by the PATH Act. It also guides SWA’s on what to do with applications that were submitted timely (within 28 days from start of employment) in 2015 during the 49-week WOTC authorization lap. As a result, employers nationwide should now begin receiving certifications for their 2015 qualifying hires. (more…)
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.’’ (more…)
President Promptly Signs Government Funding and Tax Extenders Legislation – WOTC Survives through 2019
President Obama signed a huge tax and spending package into law on Friday following congressional votes that avoided a year-end showdown over the budget and ended legislative business until lawmakers return in 2016
The tax extenders and government funding legislation passed the House and Senate today and is now on its way to the President for his pen. Of primary interest to WOTC Planet readers is the 5-year extension of the Work Opportunity Tax Credit (WOTC) with Vow to Hire Heroes Act. These will become law upon receiving the President’s signature.
From USA Today, “Senate clears massive spending bill, tax measures“.
You can read the bill here, at least until they move the file. For the WOTC extension and revision, scroll to page 38 of the PDF. (more…)