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.