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.