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.