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Normally, to qualify for the Work Opportunity Tax Credit (WOTC), an employer must first request certification by filing IRS Form 8850 with the state workforce agency within 28 days after the eligible worker begins work.

But due to the late enactment of the legislation extending the WOTC and its retroactive impact, the IRS gave employers extra time, until Sept. 28, to make requests related to eligible workers hired any time in 2015 and during the first eight months of 2016. That “lookback” period is now closed, and if you did not request certification for 2015/2016 hires, that credit is gone. The regular 28-day rule again applies for any eligible worker hired after Aug. 31, 2016.

Newman PosterWe all agree that taxes are complicated. But the “fun” thing about taxes is, all that complication presents numerous opportunities just waiting to be seized.

Lately, I keep thinking about a scene in an early Paul Newman film.

“The Young Philadelphians” (1959), had romance, betrayal, high society, blind ambition, war, and for good  measure, a murder trial. Of course, I remember none of that. In the one and only scene that I do remember ...

Do you know about the NY Minimum Wage Reimbursement Credit?

Eligible students include full time high school, college, trade school, and some other programs.

For tax years beginning on or after 1/1/14 and before 1/1/19, you could be eligible for a credit that ranges from $0.75 per hour to $1.35 per hour.  You may want to amend 2014 and 2015 returns to claim back credits.

Call me for more info.

The Work Opportunity Tax Credit ("WOTC") is available to employers who hire certain hard-to-employ targeted groups.  Some of these groups are partially defined by their residence in urban or rural renewal empowerment zones.  A list of such zones is as follows, as well as links to verify is certain addresses are within the zone.

he Work Opportunity Tax Credit (“WOTC”) was supposed to expire after December 2014, but instead it was expanded and extended through 2019. Generally, the credit is 40% of wages up to certain limits, for new employees who are members of “hard to employ” targeted groups. The wage limit is generally $6,000, but drops to $3,000 for summer youths, and increases up to $24,000 for certain veterans. To claim the credit an employer must have the employee certified as eligible prior to the first day of work, or apply for certification within 28 days of that first day of work. Except now.

 

Since the WOTC was retroactively extended, employers have until May 31, 2016 to apply for certification for eligible employees hired after January 1, 2015, and for one new targeted group the deadline is June 29, 2016. After May 31/June 29, the old 28 day deadline will apply.

UPDATE 6/20/16 : Even More Transition Relief!  IRS Note 2016-40 extends transition relief to August 31, 2016


Why does this matter? Employers (including nonprofits, by the way) have a very short window to review their new hires in 2015 - 2016  for anyone who might be in a targeted group, and to apply for certification of eligibility.  It could be well worth the effort.

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