Monday, December 28, 2015

Great news for the reentry community

The Friday before Christmas President Obama signed the budget deal hammered out by Congress under the leadership of Paul Ryan.  The GREAT NEWS for the reentry community and employers willing to give a felon a second chance is that the Work Opportunity Tax Credit was renewed and stabilized through the end of 2019.  There will be discussions in the interim about making the WOTC a permanent part of the Tax Code.  But, for now, employers who hire a felon within a year of release will be eligible for the WOTC--and we are there to help make sure they get it!

Happy New Year!

Monday, March 30, 2015

The deadline of April 30 for the IRS Relief Notice 2015-13 that allows employers the opportunity to apply for 2014 WOTC Certifications is rapidly approaching.

Now is an excellent time for employers to take advantage of this opportunity. The deadline for WOTC applications is normally 28 days from the day your new employee begins working for you, but you can now apply for WOTC tax credits for all of your eligible hires in 2014 due to the retroactive renewal of the law.

Don't put this off any longer!!​ ​

Friday, February 20, 2015

IRS Formally Announces 2014 Application Extension Period

Yesterday  the IRS released notification 2015-13 that it was extending the time employers who want to claim the work opportunity tax credit (WOTC) have to file Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit (Notice 2015-13 PDF) for any employees hired after January 1, 2014.

Form 8850 is normally due within 28 days of an employee’s start date. The retroactive extension of the WOTC credit had raised questions about how employers who hired eligible employees in 2014 would be able to timely file the form and certify those employees.

Under the extension, employers who hire a member of a targeted group on or after Jan. 1, 2014, through January 1, 2015 will be considered to have timely filed Form 8850 if it is received by the designated local agency by April 30, 2015.

WOTC Solutions has successfully filed employer applications during an IRS extension period before and we are ready to assist you again. Please email or call 888-313-5696 with any immediate questions and let's start screening your employees and saving you money today!

Tuesday, January 13, 2015

WOTC fees are also tax deductible!

Many clients have asked recently about deducting WOTC preparation fees as a business expense. The answer is, "Yes!" So not only are you lowering your bottom line tax liability, the service fees for your WOTC Consultant are tax-deductible! We wanted to make sure that we had our facts straight as we educate our clients. According to the IRS, business expenses are defined as "the cost of carrying on business". These expenses are usually deductible if the business is operated to make a profit.

What Can I Deduct?
To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary.
It is important to separate business expenses from the following expenses:
The expenses used to figure the cost of goods sold, Capital Expenses, and Personal Expenses.

Please feel free to contact us with any questions about how to claim your WOTC credit(s) after a certification has been issued. April will be here, before you know it!