IRS Extends Transition Relief for WOTC Tax Credits An Additional 90 Days
Great news for employers that did not take advantage of the WOTC Tax Credits in 2015! The IRS recently issued a 90 day extension to the Transition Relief for the WOTC Tax Credits.
The June 29th deadline has been extended to September 28th.
What does this mean?
Companies that DID NOT submit the WOTC Tax Credit applications in 2015 can still earn tax credits. The average tax credit is approximately $2,000 per employee. This can save your company thousands of dollars.
You can still do a look back for 2015 and 2016. Any new hires made between January 1, 2015 through present can still qualify for tax credits, but the applications MUST be submitted before the September 28th deadline.
After September 28th, the Department of Labor will strictly enforce the 28 day rule. After September 28th, the applications must be submitted within 28 days of the employee’s hire date.
What is the WOTC Tax Credit?
The Work Opportunity Tax Credit (WOTC) is a tax incentive offered to employers for hiring individuals from certain target groups. Companies can earn up to $9,600 for each qualified employee. Companies can start earning tax credits as long as the employee works a minimum of 120 hours.
A new category was also added to the WOTC Tax Credit in 2016. Companies can earn up to $2,400 for hiring a Qualified Long-Term Unemployment Recipient. The employee must have been unemployed 27 weeks or longer and received unemployment compensation for any time during that period.
To learn more about the WOTC Tax Credits or for a free consultation
Please contact Marcel Abandonato at email@example.com.