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.

Hiring for the fall and winter already?

If your company hires seasonally it is extremely important to screen all incoming employees for WOTC eligibility. Employees qualify after working for you for 120 hours. That's just three weeks at 40 hours per week! Having a WOTC process in place can save you thousands of dollars off of your federal income tax bill, and getting a process in place before you plan to hire for the season is the key.

Keep in mind when screening your new workers that any relatives or former employees are not eligible for the WOTC credit. However, if you generally hire new employees as contracted employees (1099s) and then move them to permanent positions (W4s), they can qualify for WOTC eligibility at the time they become a permanent employee. You take the time to review applications and check references, why not screen for WOTC and save money too?

Have you ever thought about the difference between the Work Opportunity Tax Credit and other forms of government assistance on the subject of helping the “hard to employ” find work?  

To begin with, the categories of WOTC-eligibility are carefully defined to fit discrete target groups for improving their employment prospects.  It is true that many of these categories are defined through their receipt of a governmental benefit (TANF, e.g.), but the way the WOTC works is very different and far more practical.  

This benefit is not a “giveaway” to the disadvantaged worker, but is an incentive to the hiring employer.  And, it cannot be argued that the money “credited” to the employer is either going to be paid into the General Fund in Washington, D.C. or, it remains in the community.  In practice this directly stimulates the economy closest to where both the employer and the employee (and their families) live and work.  And, with additional “after tax” money the employer can use it to hire more workers or improve the pay and benefits of its existing workforce. And, given the Certification process conducted by state agencies for WOTC applicants, this is truly a fraud free program.

Read more about the current status of the WOTC law.

WOTC Solutions offices will be closed for the Labor Day holiday on Monday, September 2. We wish you and yours a relaxing and safe holiday weekend!

The WOTC waiting game

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 after taxes. 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.

Who has the time these days?

The WOTC application process is a little bit different in every state. Though WOTC  is a federal tax credit to reduce your federal taxes owed, certification is administered by your state's WOTC Coordinator's office. As a WOTC provider, we are very aware of the details that make each of these processes different, and use that knowledge to simplify your WOTC experience. We are able save you time and money by offering an easy to use website or you can call us and we will take the necessary information over the phone in less than five minutes. It all comes down to what type of service you prefer and is most convenient for you

We also offer short webinars at your convenience customized to fit your schedule and your state's process. Contact us today and start saving money! 

From the Desk of Kay Thomason

There's a big push among all the WOTC offices to make the submission process electronic and automated. Just recently, Iowa and Minnesota have joined many other states in creating a portal for online application submissions. Having your state move from paper forms to electronic submission is great for your company! It means no longer spending money on postage to mail the original documents to the WOTC office. The turn-around time on certificates is significantly faster in states with electronic submission, than in states that process paper forms that come through the mail. It also means WOTC Solutions can get those certificates to you faster by printing out the certificates the day they are released.

Don't wait until the last minute to submit your employee! Even though the process is easier and quicker with electronic submitting, the deadline of 28 days from the employee's start date still applies to the electronic states. Contact WOTC Solutions, and we can let you know if you are in an electronic state.

WOTC 2012 backlog

Due to the unfortunate 2012 WOTC law hiatus, the certification process is terribly behind in most states across the nation. To give you an idea of how many applications these offices see in a year, in 2011 each state WOTC office received over 75,000 applications on average. As a WOTC provider, we do everything we can to expedite WOTC Certificates for our clients.

We speak to your WOTC Coordinator’s office on a regular basis to provide any administrative assistance on your behalf that will help move things along. Although applications were accepted in 2012 and the 28 day deadline enforced, each of the fifty state WOTC Offices are significantly behind since they were unable to process and verify eligibility concurrent with the applications being filed with them. Until they get through their backlog of applications we are forced to wait on them, a frustrating situation as we are sure you can understand. Below you will find the most recent update from your state’s WOTC Office.


Alabama: Status pending
California: Just began releasing 2012 Certificates
Colorado: Up to date and releasing Certificates from applications received as of April 2013
Connecticut: Just started releasing 2012 Certificates
Florida: Will be releasing 2012 Certificates within the next 4-6 weeks
Indiana: Status pending
Iowa: Recently updated to electronic processing and currently processing applications received  as of May 2012.
Kansas: Processing February 2012 applications
Kentucky: Up to date and releasing Certificates from applications received as of March 2013

Maryland: Status pending
Michigan: Caught up and releasing Certificates from applications received as of March 2013
Minnesota: Recently updated to electronic processing and releasing Certificates from applications received as of February 2013.
New Jersey: Currently processing February 2012 applications
North Carolina: Up to date and currently processing applications for February 2013

Ohio: Up to date and processing 2013 applications

Texas: Eight months behind processing 2013 applications


Please know that we are diligently working on your behalf to quickly obtain all pending Certificates by keeping pressure on these offices. Most of you will be able to claim your credit in April 2014 to lower your 2013 tax bill, but the deduction cannot be claimed until the Certificate is officially released by your state WOTC Coordinator’s office. Please remember that your Certificate is valid for 20 years from the date it is issued, so you will be able to use it in the future.

Seasonal employees?

If your company hires seasonally it is extremely important to screen all incoming employees for WOTC eligibility. Employees qualify after working for you for 120 hours. That's just three weeks at 40 hours per week! Having a WOTC process in place can save you thousands of dollars off of your federal income tax bill, and getting a process in place before you plan to hire for the season is the key.

Keep in mind when screening your new workers that any relatives or former employees are not eligible for the WOTC credit. However, if you generally hire new employees as contracted employees (1099s) and then move them to permanent positions (W4s), they can qualify for WOTC eligibility at the time they become a permanent employee. You take the time to review applications and check references, why not screen for WOTC and save money too?

From the desk of Kay Thomason

The enterprise-zone elimination bill has passed the California Assembly. This bill ends the enterprise zone program as of December 31, 2013. However, employers in an enterprise zone that hire someone before the deadline will continue to earn tax credit on the wages paid to qualifying employees. An employer is able to participate in this tax credit for up to 5 years if the employee remains employed in the (now former) enterprise zone. Taxpayers who have generated excess tax credit would be able carryover and continue using the hiring credit and sales tax credit for up to 10 years.

This elimination bill does not effect the EZs and RRCs connected with the Work Opportunity Tax Credit. This was a tax credit specific to California employers. If you would like to find out if there are other tax credits available in your state, please contact WOTC Solutions. Even if you are not hiring at the moment, you can still get set up with a WOTC provider now. Be proactive and it will save time in the future.

Happy 4th!

Happy Fourth of July from everyone at WOTC Solutions!

We wish you a fun and safe Independence Day.

Our office will be closed on Thursday and Friday of this week for the holiday.

Verification is the key to successful WOTC certification!

The letter below is a proposal to the Department of Labor to amend regulations to improve and expedite State WOTC Units processing of Federal ex-offenders. 

Our thanks to John White and Julia Peterson of WOTC Solutions, Lenexa, KS who brought this matter to our attention and assisted in preparation of the proposal, including meeting with the Federal Bureau of Prisons.

July 1, 2013

Ms. Carmen Ortiz

National WOTC Coordinator

Department of Labor

Washington, DC

Dear Carmen:

A matter has arisen on processing by State WOTC units of certification requests for Federal (not state) ex-offenders.  Federal Bureau of Prisons has an online system that allows verification that an individual is an ex-offender by inserting their prison ID number into the FBOP Inmate Locator which anyone can access and you can inspect at http://www.bop.gov/iloc2/LocateInmate.isp2.

For Federal ex-offenders, WOTC Coalition members are submitting prison ID number as well as name, SSN, and DOB as evidence of ex-offender status, urging the prisoner ID number be matched to the readily available online BOP Inmate Locator to verify ex-offender status (the Locator covers both current and former inmates).

However, State Workforce Agencies have been resisting this because it’s not specifically allowed; they are adhering narrowly to the list of allowable documentation contained in WOTC Handbook, 3^rd Edition (copy attached.)  We feel sure these allowable methods of documentation weren’t intended to exclude other official sources that are accurate, easy, and fast to consult, but we’ve come to the conclusion States won’t cease the time-consuming process of seeking cumbersome court, correction institution, or parole records for Federal ex-offenders unless DOL authorizes use of the FBOP Inmate Locator.

We propose that the Federal Bureau of Prisons Inmate Locator cited above be added to the source list for documentation to conserve staff time and funds in the verification process for federally-charged ex-felons being considered for certification.  We’ve been in touch with FBOP and are assured this web site is an official record that contains accurate and up-to-date information on Federal inmates and former inmates which can be used with a high degree of confidence to determine WOTC eligibility based on full name, date of birth, SSN, and prison ID number of a Federal ex-inmate.  Using this automated site will be a great advantage to all WOTC offices and staff and will save the program time and money.

If you agree, please consider issuing an advisory in writing to SWA’s pending revision of the Handbook, and incorporating this advice in training whenever possible. 

Many thanks for the opportunity to bring this matter to your attention.

Sincerely,

PAUL E. SUPLIZIO

President

Work Opportunity Tax Credit Coalition

Automated WOTC offices are the best!

Colorado and Ohio WOTC Coordinator's offices are ahead of the pack this year. Their efficient online WOTC application processes are light years above so many other states that are buried in paperwork, dating back years. The initial 28 day deadline is hard enough for the busy to meet, especially when you have to ensure that all the IRS forms are completed with no mistakes. These online applications don't allow for mistakes and you cannot  submit without completing all the necessary information in full. It is much easier to know that your application for Certification is digitally in line, and will be turned around faster. The online systems also allows for receiving  faster denials giving WOTC Solutions ample time to appeal and turn things around. Although we can still guarantee your Certificate doing things the old fashioned way, we sure prefer this efficient and up to date solution!

From the desk of Kay Thomason

 

Do you like taking care of business from the convenience of your computer?
In our quest to make filing for the Work Opportunity Tax Credit as easy as possible, WOTC Solutions has created an online submission form. By completing this form, WOTC Solutions will have all the information we need in order to create and complete your paperwork and manage the entire certification verification process.

Busy employers can use this form to submit the information we need to begin the certification process and obtain your WOTC certificate. If you are not sure if your employee is WOTC eligible, please complete the form and we will provide you with paperwork to screen for their eligibility. Just fill this out and we'll do the rest!

Food stamp debate can affect employer's bottom line...

As Congress debates the farm bill, food stamp recipients are in jeopardy of losing their benefits. The bill proposes to cut $24 billion over ten years from the program. Food stamp recipients, also known as SNAP recipients, are the largest category of WOTC-eligible workers with 70.8% of the total Certificates released in 2011.

The WOTC  law has always been intended to make these 'hard to hire' workers more attractive to employers by providing a significant tax benefit of up to $2400.00. By getting citizens that rely on these government programs back in the workforce, the program cost is lowered and everyone wins. Private employers that utilize the WOTC are leading the way in this current economy by creating jobs, creating more tax paying citizens and lowering the cost of government programs.

There really is no debate that the WOTC law is a productive and useful way to incentivize employers and there is no downside to it's intended  purpose. Everybody wins.

From the desk of Kay Thomason

 Empowerment Zones & Rural Renewal Communities

At WOTC Solutions, we get a lot of questions about what qualifies an employee for an Empowerment Zone (EZ) or a Rural Renewal Community (RRC). For both of these WOTC target groups, the candidate must be between the ages of 18 and 40. Their primary place of residence must be within the federally-designated EZ or RRC.

To verify residence in an EZ or RRC, the Department of Labor accepts valid Driver's License, mail with address contained, passport or library card. The address on these documents must match the address provided in IRS Form 8850.


Empowerment Zone Locator:
http://egis.hud.gov/ezrclocator/

List of counties that are Rural Renewal Communities: (see page 3)
http://www.irs.gov/pub/irs-pdf/i8850.pdf

Will the WOTC law become permanent?

We are routinely asked by those with an interest about the future of the WOTC law given the vagaries of the current Congress.  You can rest assured that we keep a close watch on that and are heavily-invested in the legislative process.  You may be aware that the current WOTC law is set to expire at the end of 2013 and its continuation is subject to Congressional action.  A WOTC Solutions representative spent a number of days in Washington, D.C. recently to “take the pulse” of where things stand, including personal meetings with a number of key Congressional offices with more to come later in the summer.  The “bottom line” is that the leadership of the Republican-controlled U.S. House has decided that there will be no revenue bills passed and sent to the Senate until they consider the political timing to be right.  Under the Constitution all revenue bills must emanate in the House to be passed over to the Senate for amendments and conference. 

Eventually the House will be forced to pass tax/revenue legislation which will then be sent to the Senate for consideration and to compromise agreement on differences with the House version before it is then sent to the White House for the president’s signature. On the Senate side the Finance Committee is Chaired by Senator Max Bauchus (D, MT) who is a firm supporter of the WOTC and unlikely to approve any tax/revenue law that does not include extending or making the WOTC permanent.  And, in its summary of its own proposed budget the White House (for the first time in history) included the permanent extension of the WOTC to provide employers with much-needed stability so the law works as intended.  We are told on the House side that there is not likely to be much resistance to this compromise since the WOTC is a proven and effective law using market principles to incentivize employers help the “hard to hire” find work.

So, things appear to be positive for improved stabilization but we must all remain vigilant and continue communicating with our Congressional representatives to see this good law continued.  We will continue to keep you posted as the process continues. If you have specific questions or would like to contribute your own efforts, please send us an email and we will get you pointed in the right direction!

From the desk of Kay Thomason...

Questions I get asked all the time:

How much does an employer typically get from WOTC?
How much your business gets depends on how long the qualifying employee works for you. As long as the employee reaches 120 hours worked, you will get a tax credit. If the employee reaches 400 hours worked and $6000 in wages earned, you get the maximum amount of tax credit, which is $2400.

Do I only need one certificate for my business or do I need one for each employee?
The certification is for an individual employee, but the tax credit will be applied to your business. A different application must be submitted for every employee that falls under one of the Work Opportunity Tax Credit target groups.

I have a certificate, but I did not get it in time for this years taxes. Have I lost my tax credit?
Absolutely not! An unused WOTC credit can be saved for up to 20 years, or it can be carried back a year. That way you can use it when you need it most.

How much paperwork is involved in applying for the Work Opportunity Tax Credit?
There are two main forms (IRS Form 8850 & 9061) that need to be submitted within 28 days of hiring the WOTC-eligible employee. Any mistakes in the forms could result in a denial. Then there is the verification process, which is different for every target group. Verifying the employee is hardest and longest step in the WOTC process.

How can I know if my employees are WOTC eligible?
Here at WOTC Solutions, we will screen your incoming workforce for free. By attaching to forms to your hiring packet, we can make sure this tax credit doesn't slip through the cracks.

Who qualifies for the WOTC certificate?
You can find a detailed description of the WOTC target groups here at our website. However, the employee will not qualify if they are a family member or have worked for your business before.


I hired someone a few months ago, but I just found out about the Work Opportunity Tax Credit. Can I still apply?
Unfortunately, no. One of the biggest barriers to receiving WOTC certification is the 28 day deadline. All application forms must be completed, signed, and postmarked within 28 days of hiring a WOTC-eligible employee. The state WOTC offices will not process any submissions outside of this deadline.

How does WOTC reduce the cost of doing business?

This is a question we answer every day and  it's really simple. One of the biggest expenses for employers is the cost of hiring. When you add up time spent, cost of training, turnover, cost of screening and interviewing potential employees hiring becomes a major expense, and the bigger your company is, the bigger the bill.

The Work Opportunity Tax Credit can increase your bottom line significantly. Obtaining this credit can actually turn your hourly rate of pay from $15.00 an hour into $10.50 an hour. Here's how:

If you hire one new WOTC eligible employee at a rate of $15.00 per hour and that employee works 400 hours and is paid gross wages of $6000.00 you will then earn the maximum value of your credit at $2400.00. Including the service fees for collecting the credit, at a standard rate of 25% of your credit's value, you have just saved $1800.00 reducing the hourly cost of that employee by $4.50 to $10.50.

If you're saving an average of $4.50 an hour by hiring WOTC eligible employees, you could save enough to hire 4 new employees instead of 3,  increasing your company's productivity while reducing the cost of doing business. That  is what this truly valuable hiring incentive is intended for, rewarding employers who are hiring and creating jobs in their communities.

From the desk of Kay Thomason...

Have you tried calling the IRS toll free number lately to ask a simple question? You may have noticed the wait on the IRS hotline has gotten longer and longer. This is because there are fewer people on the other end. In response to the federal sequester, many government departments are downsizing to cut down on costs. This has quadrupled the already long wait to talk to someone at the IRS, and these are only the first round of furloughs. You can read about more about the cuts here.

Instead of waiting on hold for 2 hours, get in touch with a representative immediately at WOTC Solutions. We have the experience and the knowledge to answer your WOTC related question no matter how simple, no matter how in depth it may be. We can help you with the particulars of filing for the certificate, who qualifies, what your deadlines are, and what steps to take once your certificate is in your hand, and you can be certain  there won't be a two hour wait on the phone. We know you have better things to do with your time, quite frankly, so do we.

Screen your new employees to lower your company's liability

2013 WOTC applications are being processed very quickly and WOTC certificates are being released in the states of Alabama and Ohio. Many WOTC offices across the country are updating their application process to an online system that expedites the eligibility verification process significantly. This is great news for any employers adding to their workforce in 2013. Although 2012 Certificates are trickling out and unfortunately being put in line to be verified behind 2013 applications, at least employers can feel more assurance that they will be able to get their hands on this valuable hiring incentive for this year. Remember, the WOTC eligibility come in the form of your new employees, so make sure you are screening for that eligibility.

It makes even more sense now to get a WOTC process in place (prior to hiring new employees) that goes hand in hand with your business's hiring process so that you never miss out on this $2400.00 credit per employee again. You can save them up all year and practically eliminate your federal tax liability. It's like having a tax credit savings account!

From the desk of our WOTC Certification Manager, and resident WOTC expert, Kay Thomason.

Under the VOW To Hire Heroes Act of 2011, the WOTC was expanded to allow tax exempt organizations to gain the WOTC tax credit for hiring veterans. The tax credit for non-profit organizations is up to $6,420 per veteran, depending on the length of the veteran's unemployment before hire, the number of hours worked and the veteran's first year wages. This addition applies to all veteran categories. 

The certification process is the same for non-profits, including the 28 day deadline for the Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit. Since the credit is processed separately from the company's tax return, the IRS will refund the amount of the tax credit. The credit can be used against the employer's share of social security tax. A non-profit organization should not reduce the amount of their tax return in anticipation of the tax credit.

If you are a tax exempt organization looking for eligible workers, contact your local Veteran Affairs office or call us and we will answer any questions you might have on this subject.

There are many tax incentives offered to employers who are creating jobs in our current economy and they can differ depending on what state, county, city or 'zone' your business is in. The Work Opportunity Tax Credit is a federal tax credit that is certified through each state's Department of Labor and is specifically designed to reward employers for hiring from a category of citizens that historically are 'hard to hire'. If you are missing out on the WOTC, what other benefits could you be missing out on?

For example, in Tennessee the state offers a tax credit for jobs created based upon your capital investment amount. In Georgia, business owners are rewarded based upon starting up in certain 'zones' of the state. None of these credits are easy to obtain and none of them are designed to be the most time efficient of processes, especially for busy business owners.

Unfortunately, not all tax agents or accountants are up to speed on the front end of these credits. Sure, they can claim them for you, but there are often earlier deadlines that have to be met in order to claim them down the road. Make sure you are aware of all you are entitled to for creating jobs in 2013.

Monday April 29th is the absolute deadline for all WOTC applications resulting from the IRS Extension! All application paperwork for anyone that was hired from 01/01/12-03/31/13 must be postmarked to your WOTC Coordinator's Office by Monday. On Tuesday April 30th, we return to the 28 day deadline for all 2013 applications. Don't miss out on your money again. It's yours. You earned it.

We know it’s a very busy time of year and taxes are on every employer’s mind right now. Due to the confusion of the WOTC hiatus of 2012, many people missed WOTC application deadlines. The IRS announced earlier this month that the 28 day application deadline does not apply to WOTC-eligible employees hired between January 1, 2012 and March 31, 2013. Click here to read the IRS full transition relief notice.

What does this mean for my business?
You still have an opportunity to apply for the $2400 credit for all qualified employees. Your state’s WOTC office will now accept WOTC applications on behalf of  WOTC qualified employees during the above specified time frame until April 29, 2013.

It is really simple to get started now, but time is running out!

WOTC Certificates are good for 20 years! It's important to meet all the deadlines and get your hands on your WOTC Certificate for future use. Even if you don't receive it in time to use against your tax liability this year, you can use it whenever you need to in the future. So go ahead and pile them up! They will certainly come in handy when your accountant delivers your tax bill in 2014 and beyond.

Kansas and Colorado WOTC Coordinator's offices are leading the charge! We are constantly in touch with all WOTC Offices and this week we received 2012 Certificates from Kansas and Colorado. We will continue to post the status of these offices, good or bad, as we hear more!

WOTC Solutions is proud to announce that we are the newest Associate Member of the Ohio Grocer's Association! We look forward to providing valuable service and WOTC expertise to all OGA members. Read this week's edition of The Weekly Checkout to see the article WOTC Solutions contributed.

On Friday, the IRS released notification 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 2013-14 PDF).


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 2012 and early 2013 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, 2012, and up to March 31, 2013, will be considered to have timely filed Form 8850 if it is filed with the designated local agency by April 29, 2013.


Call us today at 888-313-5696 to find out how to take advantage of this tax saving opportunity!

We know that tax deadlines are looming and want to keep you current on the status of your WOTC Certificates so you can plan for your WOTC after-tax savings.

2012 was unprecedented for the Work Opportunity Tax Credit. Its (retroactive to January 1, 2012) renewal was stalled by Congress until January 1 of 2013. WOTC Solutions spent most of last year speaking with every member of the House and Senate to ensure that your voice was heard and to let them know the importance of the WOTC for your business.

What’s going on now?
Although applications were accepted in 2012 and the 28 day deadline enforced, each of the state WOTC Offices are significantly behind since they were unable to process and verify eligibility concurrent with the applications being filed with them. Until they get through their backlog of Certificate Applications we are forced to wait on them, a frustrating situation as we are sure you can understand.

Will I be able to claim my credit?
Please know that we are diligently working on your behalf to quickly obtain all pending Certificates by keeping daily pressure on these offices. Most of you will be able to claim your credit this year to lower your 2013 tax bill, but the deduction cannot be claimed until the Certificate is officially released by your state WOTC Coordinator’s office. Please remember that your Certificate is valid for 20 years from the date it is issued, so you will be able to use it in the future.

There are nine WOTC target groups to hire from in order to be eligible for your $2400 credit. Take a look at this breakdown that shows the categories that were most certified in 2011. Who are you hiring this year? You could be missing out on a significant tax savings!

WOTC Solutions spent a significant amount of time and effort ensuring that the Work Opportunity Tax Credit  was renewed for 2012-2013. Below is a recent letter we received.

Thank you for writing.  As President, it is my privilege to hear from Americans like you who take time to offer their perspective on the serious issues facing our Nation.

The American people are looking for cooperation, consensus, and common sense in our Government, and they have shown they want action.  I intend to deliver that in the months and years ahead.  From putting Americans back to work to expanding access to medical care, my Administration will continue to do what is right to move our Nation forward.  We have enacted the most comprehensive financial reforms in decades, rescued and helped retool our auto industry, expanded student aid to millions of young people, helped level the playing field for working women, and made the largest investment in clean energy in our history.  Because of the courageous acts of our service members, we have been able to end the war in Iraq and take down Osama bin Laden.  We have also made historic commitments to provide for our troops as they return home. 

Securing our country’s future will take time, but I will not stop working to rebuild the kind of America where everyone gets a fair shot, everyone does their fair share, and everyone plays by the same rules.  I remain committed to working with leaders of both parties to meet the challenges we can only solve together:  reducing our deficit; reforming our tax code; fixing our immigration system; and freeing ourselves from foreign oil.

I am always eager to hear ideas that will help our country adapt to changing times and lead us toward a brighter day.  Despite our differences, we know that our destiny is shared and that our country is at its best when we accept our obligations to one another and to future generations.

Thank you, again, for sharing your views.  I encourage you to explorewww.WhiteHouse.gov to learn more about the ways we are moving America forward.

Sincerely,

Barack Obama

Good news in the WOTC world today. These changes would make it  much easier to get your employee's WOTC Certification. Click here to read full story.

Our staff contacted every single member of the House and the Senate in November 2012 in order to let our elected officials know the value and benefit of the Work Opportunity Tax Credit to small businesses across the nation. WOTC was renewed on January 1, 2013 and backdated to January 1, 2012. 

Tax Credits for hiring new employees...

WOTC 2013 Update

The Work Opportunity Tax Credit was renewed on January 1, 2013 and extended through December 31, 2013. This valuable $2400.00 tax credit was stalled the entire 2012 calendar year while Congress struggled to agree on tax reform. Now you can apply for the credit and keep that money in your business rather than sending it to Washington.

The WOTC can be applied for when you hire a new employee from one of the following target groups:

• Designated Community Residents
• SNAP Recipients
• TANF Recipients
• Qualified Ex-Felons
• Qualified Veterans
• SSI Recipients

Many busy business owners miss out on this huge tax savings by failing to screen new employees and missing filing deadlines that occur within the first 4 weeks of employment. Don’t ever miss this deadline again and don’t continue to send your hard earned money to Washington.