In light of Hurricane Ida, the IRS has provided tax relief to employers in FEMA-declared disaster areas including the entire state of Louisiana, and certain areas in Mississippi, New Jersey, New York, and Pennsylvania.
The IRS tax relief extends the 28-day deadline for submitting Work Opportunity Tax Credit (WOTC) certifications in the aforementioned locations.
In Louisiana, the tax relief extends the filing deadline for WOTC certifications that were originally due by August 26, 2021, through January 3, 2022.
For the state of Mississippi, a total of 82 counties and the Mississippi Choctaw Indian Reservation are subject to the WOTC filing tax relief. As such, WOTC certifications which were due by August 28, 2021, were extended through November 1, 2021.
Portions of New Jersey and New York will be able to file WOTC certifications through January 3, 2022, for WOTC submissions that were due on or after September 1, 2021. The State Workforce Agencies make clear that the WOTC filing deadline extension applies to employees who started on or after August 3, 2021, and before December 6, 2021.
Certain regions within Pennsylvania will also have a WOTC filing extension through January 3, 2022. Like New York and New Jersey, the WOTC filing extension applies only to employees with a start date on or after August 3, 2021, and before December 6, 2021.
For a full list of the counties and regions receiving the IRS tax relief and subsequently can take advantage of the WOTC tax relief, head to the IRS Hurricane Ida Tax Relief page.
If you aren’t currently administering the WOTC program, now is a good time to start. The program is simple in concept and provides financial incentives to employers for hiring economically disadvantaged workers. Employers can earn up to $9,600 per qualifying employee. The WOTC program recently received an extension through 2025 as well.
Need assistance getting started with WOTC or another tax credit program? Download our TaxAdvantage product sheet below to learn more.
Tax credits are a great way for organizations to increase their bottom-line. If you’re interested in learning about WOTC, the ERC, or a different tax credit, contact us to see how we can help your organization start earning.