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.
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.
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.