March 16, 2015

WOTC Extension Questions

By this time most everyone knows that The IRS recently announced Notice 2015-13, which will provide some much needed relief for employers seeking WOTC credits from 2014.

As we’ve mentioned before, this is a nearly unprecedented move by the IRS. Since the inception of WOTC in 1996, this is only the second time such an extension has been made available. Again this is only for 2014, the WOTC program has waived its 28-day deadline to submit tax credit requests.

As we’ve had countless conversations with employers there are some consistent questions that have come up and we’d like to answer them here in case you might be curious.

When is the deadline for submitting last year’s forms?

April 30, 2015 is the deadline for submitting any new hires’ applications from 2014 only. All 2015 forms must be received within the regular timeframe of 28 days from new hires’ start dates.

Who is eligible?

All employees hired between January 1, 2014 and December 31,2014 are eligible to apply.

How often does this happen?

The rare extension has only occurred twice since WOTC was established in 1996. This is a great opportunity to recoup extra tax savings!

How far back can we go?

Any new hires made since January 1, 2014 are eligible.

When can I use the credits?

WOTC offsets federal income taxes and can be carried back to the prior year or carried forward 20 years.

There’s only one catch to this relief measure and that is the April 30, 2015 deadline. This means that ALL 2014 applications must be submitted by this date or they will not be processed.

To learn more about IRS Notice 2015-13 and how it applies to your business, email troyloney@taxcreditmgmtgroup.com now before time runs out.

March 10, 2015

SNAP: A Huge Part of WOTC Tax Credits

The WOTC program includes many target groups. Among these are SNAP (Supplemental Nutrition Assistance Program) recipients, or persons receiving food stamps. It’s highly likely that you may have hired a SNAP recipient or member of a qualified household. According to USDA statistics, in fiscal year 2014, SNAP recipients represented over $10 billion in available tax credits.

With the volume of SNAP recipients in this country, you’ve probably hired untold numbers which met WOTC qualifications. Did you know that roughly one in seven Americans receives this aid? Since the recession, food stamp recipients grew to over 23 million households. The number of children benefiting from the program has nearly doubled to over 15 million since the 2007 recession. All across the country, rural and urban citizens receive food stamps temporarily and long-term.

Hiring a SNAP beneficiary could earn you up to $2400 in tax credit for each new candidate. Qualified candidates must be between 16-39 years old and not have worked for your company before. State workforce departments must receive requests within 28 days of new hires’ start dates.

The great news is these people are easier to identify than you thought possible. By taking advantage of these, and making minor tweaks in your hiring process, you could save thousands in tax dollars. Give us a call at 563-583-2115 to learn how to get started or you can find out how much you have been missing in tax savings by using our free calculator HERE.

February 25, 2015

2014 WOTC Tax Credits Still Available

The WOTC program experienced some unique challenges in 2014 stemming from the late December renewal. Although the renewal was retroactive, it created a hardship for employers seeking to take advantage of these lucrative tax credits.

The IRS recently announced Notice 2015-13, which will provide some much needed relief for employers seeking WOTC credits from 2014.

The problem that everyone has experienced is a loss of time resulting in missed credits due to the traditional 28-day submission window after a new hire’s start date.

With this provision ANY employer can currently submit all of their 2014 new hires for credit qualification!

This is a nearly unprecedented move by the IRS. Since the inception of WOTC in 1996, this is only the second time such an extension has been made available.

In reality, this means that all WOTC participating employers can go back and double check that all of their 2014 new hires were submitted for credit. For those employers that haven’t participated before, this is the absolute perfect time to get started and receive retroactive credits for all 2014 new hires! This is the best scenario for all of those we talked to that were heavily considering WOTC last year but held off because of the pending renewal.

There’s only one catch to this relief measure and that is the April 30, 2015 deadline. This means that ALL 2014 applications must be submitted by this date or they will not be processed.

To learn more about IRS Notice 2015-13 and how it applies to your business, email troyloney@taxcreditmgmtgroup.com now before time runs out.

February 16, 2015

Long Term Unemployed Could Become A Part of WOTC

There are two proposed modifications to WOTC that could be invaluable for employers across the country. The first proposal is to add Long Term Unemployed as a target group, and the second is to make WOTC a permanent establishment rather than requiring annual renewal.

Senior NJ Democrat Bill Pascrell and NY Republican Tom Reed have re-introduced bill H.R. 481 to add the Long Term Unemployed (those unemployed for 27 weeks or more) to the WOTC target groups. Initial estimates suggest that the passing of this bill would add roughly 4.7 million people to be eligible for employment under the WOTC umbrella.
With each qualified hire being valued at up to $2,400, this addition would potentially increase available tax credits by $11.28 Billion! Keep in mind that these available credits are in addition to the other 10 target segments.

The second proposal came from President Obama when he added WOTC as permanent legislation in his Fiscal Year 2016 budget. Although WOTC has been around for decades, it has required congressional renewal every couple of years. Often times this has created delays and lapses while employers have to wait for credits earned months prior. What this really means is that employers can offset the cost-burden of the hiring and training period when bringing new hires on-board. A permanent program would give jobs to Americans most in need and add money to employers in return.

WOTC has been an invaluable tool for employers providing countless billions in tax credits since it’s inception. We welcome both of these proposed changes whole heartedly and look forward to the day we can report that they’ve been voted into existence.

If you’d like to learn more about how these proposed changes could impact your business, we’d love to chat, just contact us here.

February 6, 2015

Why Military Veterans Make Great Employees

It’s no secret the military veterans are prized employees, but have you thought about just how valuable they can be?

1. They have some of the best training in the world. Their job calls for operating all sorts of equipment and cutting-edge technology sometimes on a moment’s notice. With this practice, they have adaptability to quickly learn new technologies and skills necessary to succeed on the job.

2. They are experts in specific detailed communication. Imagine guiding a pilot landing a jet that is carrying a 500-pound bomb on a ship. Clear precise communication is key for the fate of the lives of those on the ship and the plane. How about giving instructions to an injured, foreign civilian who speaks no English? This scenario equips soldiers to interact sensitively and quickly across diverse cultures.

3. They’re the ultimate team player. Living together with a crew out at sea, in the desert, jungle or the forest has its perks, but room for discomfort, especially if you’ll be there for months at a time. Calm disposition and quick action, for the troop’s safety and morale, are imperative if you’re fighting enemy fire side by side with a fellow, injured soldier.

4. They’re singularly focused on mission objectives. This frame of thought helps veterans look at the bigger picture and focus on winning battles during the ultimate tests of distractions and emotional highs and lows.

5. They’re relentless in their approach because they don’t know how to quit. They have made the ultimate sacrifices, leaving behind family and friends at home, putting that on hold to defend citizens’ freedoms and lives. Military slogans, such as “Army Strong” and “Serve Before Self”, are just defining traits of their work ethics. This commitment translates to dedication and persistence in the work place.
Not only have they been trained to know how to do all the things listed above, but they’ve also implemented their training in real-life, stressful, high stakes situations. In reality, you can’t find any civilian that is as trained and experienced as former military personnel.

In order to honor the service of our patriotic service men and women our government has made some fantastic incentives for you to hire military veterans.

When companies hire soldiers returning from active duty, they could be eligible for up to $2400-9600 in tax credits. Hiring unemployed veterans could qualify businesses for as much as $5,800 while providing jobs to disabled servicemen and women rewards business up to 9,600 over a two-year period. Plus, more pending, veteran hiring incentives are on the voting agendas in Washington.

For now, this is a great opportunity to give back to those who have served. The reward is a well-rounded employee, thus saving your business hiring and training costs, and a lucrative tax credit, all for your bottom line.

To find out how much you’ve been missing in tax credit savings, you can use our free calculator here.

January 20, 2015

WOTC Update for 2014 Taxes

As most of you are probably already aware, the WOTC program was in hiatus from January until mid-December 2014. Therefore, the WOTC certifications are backlogged and many states are anticipating delays past April 15th. Some areas could see backlogs as late as August.

Given the circumstances, most of you will have a couple options to make the most of your pending certifications.

File your taxes on time and claim a portion of the credits.
Consider filing an extension in order to claim all of your 2014 certificates as a tax credit on 2014 taxes.

We would be happy to answer any questions to help you and your accountant make an informed decision. As always, you may reach us via email or by calling 563-583-2115.

November 2, 2014

Tax Extension Filing

As you may be aware, there are several tax programs awaiting congressional renewal. It isn’t uncommon for tax credit programs to lapse, particularly the Work Opportunity Tax Credit. However, currently, the IRS and lobbyists are urging lawmakers to vote on tax bills by the end of November to expedite the process. In the meantime, we suggest that customers file for extensions due to a potential backlog of approved credits, not just through WOTC but other pending bills as well.

Congressional leaders vote on factors aside from just renewing incentives. A few determinants include budget proposals, the length of time to extend incentives and whether to do so permanently or temporarily. Sometimes, leaders may re-write provisions to accommodate these fluctuations. With its’ size, WOTC lapses aren’t unheard of. Throughout its history, the tax incentive has been in hiatus several times since established in 1996.

The IRS has urged lawmakers to vote on tax bills to expedite the process. In the meantime, we suggest that customers file for extensions due to a potential backlog of approved credits, not just through our program but other pending bills as well.

1 … 7 8 9

Blog