Special Tax Alert: Tax Credit Deadline 9/28

Employers of workers facing significant barriers to employment are urged to apply for the Work Opportunity Tax Credit (WOTC) enacted by the Protecting Americans from Tax Hikes (PATH) Act. The deadline to request certification has been extended to September 28, 2016 and applies to workers hired between January 1, 2015 and August 31, 2016.

Nine categories of workers hired between January 1, 2015 and December 31, 2015 qualify for the valuable tax credit. A tenth category was added for long-term unemployment recipients hired on or after January 1, 2016.

The ten categories of eligible workers to qualify for the Work Opportunity Tax Credit (WOTC) are:

 

  • Qualified IV-A Temporary Assistance for Needy Families (TANF) recipients
  • Unemployed veterans, including disabled veterans
  • Ex-felons
  • Designated community residents living in Empowerment Zones or Rural Renewal Counties
  • Vocational rehabilitation referrals
  • Summer youth employees living in Empowerment Zones
  • Food stamp (SNAP) recipients
  • Supplemental Security Income (SSI) recipients
  • Long-term family assistance recipients
  • Qualified long-term unemployment recipients (This only applies to employees who were hired on or after January 1, 2016).

To request certification for the WOTC, employers must complete Form 8850. For employees hired after August 31, 2016, employers will have the normal 28-day period to request certification. For more information on the Work Opportunity Tax Credit visit https://www.irs.gov/businesses/small-businesses-self-employed/work-opportunity-tax-credit-1.

Don’t miss the deadline, call us today with any questions!