WOTC law status update

December 20, 2013

Yesterday Senator Reid introduced S.1859, a bill to extend most expiring tax provisions through 2014.

WOTC is extended, “as is” in S. 1859 through December 31^st 2014.

Today, before Congress adjourned until January 3^rd, Senator Reid announced the first business day for the Senate next year will be January 6^th, and that at 5:30 PM on January 6^th a cloture vote to limit debate and move to final passage of the measure will be taken.  Sixty votes will be required to invoke cloture and move to final passage.  This will be the decisive vote on the bill.

Enormous thanks to all who labored to turn matters around in the Senate and bring us this far in the campaign. We should renew our contacts with all senators on January 3^rd and urge them to vote for cloture on S. 1859 when the Senate votes on January 6^th.

PAUL E. SUPLIZIO

President, WOTC Coalition

Happy Holidays!

Happy Holidays from all of us at WOTC Solutions. Our offices will be closed the afternoon of Tuesday, December 24 and Christmas Day. Have a safe and happy holiday!

WOTC Update

As we prepare for the end of the year and the beginning of 2014, we want to update you on the status of the law that authorizes the Work Opportunity Tax Credit (WOTC). We try to keep a close eye on what’s happening in Washington to make sure the WOTC program remains useful for you.

Unfortunately the WOTC law is (again) set to expire on December 31, 2013. This is a frustratingly frequent event, and in the past the law has always been retroactively reinstated -- and we expect the same in 2014. The challenge for all of us is that state WOTC offices will not process applications and cannot not release Certificates while the law is not in effect.

What can I expect now?

We are doing everything we can to apply pressure to the State WOTC offices to get pending Certificates released before January 1. You need these certificates in order to claim the credit when paying your taxes in 2014. Of course, the progress and timing of issuing these certificates is quite out of our control, and some State offices do better than others. Please do keep this is in mind: any WOTC credits you earn can be used for 20 years, so they can be applied to your tax liability at just about any point in the future.


What can I do?

Most importantly, stay current on your WOTC paperwork. If you’d like to do more, contact your House Representative to express to him or her the importance of this law to your business. Contact from local constituents has a major impact on votes in Congress, so please know that your voice can make a difference. If you would like us to help you with talking points or prepare an email to send, please email us and we’ll get right back with you.

Happy Thanksgiving!

The offices of WOTC Solutions will be closed Thursday, November 28 and Friday, November 29 for the Thanksgiving holiday.

Tax Credit Savings Account

We get a lot of questions in regards to how long the WOTC process takes. The benefits to eligible employers are unfortunately not immediate which is why it is important to get WOTC screening services in place so that you can use the credits in the future. Depending on your state office, Certification can take anywhere from 2 weeks to a year. Screening all your new employees for eligibility will determine and project estimated amounts you can save in 2014.

Having WOTC services in place at your business is a lot like opening a tax credit savings account. With every new hire that is WOTC eligible you have the potential to lower your federal tax liability. If you hire 100 new employees in 2013 and 20 are eligible, you have the potential to save $24,000.00. If you pay $12.00 an hour to new employees, you can save $3.60 per hour with WOTC credits. 

How does my business get started?
1. Call WOTC Solutions today.
2. Identify how to integrate WOTC screening into your current hiring process. 
3. Identify and screen all new hires within the past 28 days.

WOTC Solutions is very adaptable and wants to work with you to save not only money, but also time. Call us today and start saving tomorrow.

Let your elected officials know how the WOTC affects your business.

In the midst of the current unstable and unpredictable political climate, the life of a business owner goes on. Business owners still have to show up, unlock the doors, turn on the lights, order supplies, provide services, pay taxes and pay their employee's wages. And, the uncertainty of tax hiring incentives can mean the difference between hiring one new employee or hiring two.

Once again the Work Opportunity Tax Credit is scheduled to sunset on December 31 of this year. If you currently take advantage of this valuable hiring incentive you need to let your elected officials hear from you. Right now it is especially important to contact your Republican House members directly and let them know how your business uses the WOTC to lower hiring costs, and allows you to create jobs. Give them a call and let them hear from a business in their district, who they were hired to represent.

If you need any assistance with who to speak to and/or any written materials, please contact Julia Peterson at 888-313-5696 ext 712 or by email to get pointed in the right direction. Or click here to see a list of current members of the U.S, House of Representatives. Let your voice be heard, no one has money to burn.

Employee eligibility

WOTC eligibility is a complicated and often tricky subject for busy business owners. Let's look at a few different hiring scenarios that we've come across at WOTC Solutions to shed some light on the subject.

#1
Bob's Carpet Store just hired a new employee, Bill, that is a WOTC qualified veteran. Bill is taking the job at Bob's part time because he has another part time job at  Jim's Car Wash. Which employer can claim the WOTC credit for hiring Bill?

The Answer: Both employers can apply for and eventually claim the WOTC. Eligibility is based upon the employee and not the employer. The credit is then claimed against federal income taxes based upon the amount of hours an eligible employee works and the gross wages they were paid.

#2
Jim owns his own landscaping business and was just awarded a contract to provide landscaping services to a local mall. He hired his brother, Paul, and his friend, Tom, as contract labor to assist with this large client. Are either Tom or Paul WOTC eligible employees?

The Answer: Neither Paul nor Tom is WOTC eligible. Employees must have taxes deducted from their earnings to qualify. Being contract labor disqualifies an employee. And, an employee related to the business owner is disqualified.

#3
 Martha's Bakery hired three employees on October 1 from a local halfway house that are all WOTC qualified ex-felons. Today is October 27. Can Martha apply for the WOTC based upon her new hires?

The Answer: Yes! However the deadline to apply is 28 days form the employees start date of October 1. All Martha's paperwork must be complete, correct and received by the State WOTC Office October 29.