IRS Issues Hurricane Ida WOTC Tax Relief in 5 States

WOTC

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…

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Infrastructure Bill Ends Employee Retention Credit Early

Employee Retention Credit

Yesterday President Biden signed the long-debated Infrastructure Bill into law. Along with significant changes to our nation’s roadways and transit, the bill hosts a number of new changes, including an early end to the Employee Retention Credit. The $1.2 trillion Infrastructure Investment and Jobs Act effectively ended the opportunity for employers to claim the Employee…

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IRS Releases WOTC Transition Relief for Select Employers

WOTC

The IRS recently issued transition relief for certain employers administering the Work Opportunity Tax Credit (WOTC) program. IRS Notice 2021-43 extends the typical 28-day time frame for submitting a certification request to a designated State Workforce Agency (SWA). Employees hired between January 1 and October 8 of 2021 are now able to submit WOTC requests,…

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The Employee Retention Credit Could End Next Month

Employee Retention Credit

A $1.2 trillion bill passed in the Senate last week and is now making its way through the House of Representatives for review. Included in the package are terms and conditions pertaining to the Employee Retention Credit. The bill officially titled the Infrastructure Investment and Jobs Act includes language that ends the Employee Retention Credit…

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Everything you Need to Know About The Latest WOTC TEGL

TEGL

Earlier this year the Department of Labor issued a Training and Employer Guidance Letter (TEGL) regarding the Work Opportunity Tax Credit (WOTC). The TEGL reiterates how employers and state workforce agencies (SWAs) should proceed with administering the WOTC program and its related processes. The purpose of the TEGL is to “provide updated procedural guidance to…

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WOTC Program Reauthorized and Extended Through 2025

WOTC

Earlier this year the federal Work Opportunity Tax Credit (WOTC) program received an extension through December 31, 2025.  The Consolidated Appropriation Act, 2021 (CAA) reauthorized the WOTC program and ensures that employers administering the program will continue to be able to earn up to $9,600 per qualified candidate. Also included in the CAA are extensions…

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Congress Approves Budget Renewing WOTC for 2020

In the twilight amidst another government shutdown, Congress has signed and passed the budget for 2020. Amongst some of the provisions are an extension of the Work Opportunity Tax Credit (WOTC) program through December 31, 2020. With the WOTC program renewed December 31, 2020, employers will be able to administer the program and earn up…

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IRS Issues WOTC Directive on When to Apply a Certification

The IRS issued a directive that should make it easier for employers administering the Work Opportunity Tax Credit (WOTC) program to receive tax credits in the year employer certifications are issued. The issuance of WOTC certifications by State Workforce Agencies is often delayed and employers sometimes don’t receive them until the following year. This process…

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2018 WOTC Statistics Demonstrate Benefits to Employers

The U.S. Department of Labor (DOL) issued statistics for 2018 that highlight how much employers can benefit from participating in the federal Work Opportunity Tax Credit (WOTC) program. According to the DOL, employers in 2018 obtained 2.2 million WOTC certifications. This represents billions of dollars in federal tax credits. Employers particularly benefited from hiring job…

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