Work Opportunity Tax Credit Extended – Act Now
Last week, the IRS issued a notice extending the look-back period for employers to apply for work opportunity tax credits on eligible employees hired on or after January 1, 2015. This transition relief will allow employers to file for tax credits on employees hired through August 31, 2016. The new deadline is September 28, 2016.
For the past several years, the Federal Government was in the cycle of retroactively extending the Work Opportunity Tax Credit program and granting a look-back period for employers to collect their credits on employees hired in the previous year. However, in late 2015 Congress passed a long term extension, renewing the program through 2019. There was still the issue of employees hired during 2015, and this latest extension covers those hires.
In normal circumstances, employers have 28 days from the date of hire to file for these tax credits.
Employers can secure thousands of dollars per eligible employee by hiring workers from a list of target groups. If you’re in need of workers, taking advantage of the Work Opportunity Tax Credit program can significantly reduce your tax liability.
FMS already has a WOTC program in place that can help employers in capturing these credits. To date, FMS has secured our clients over $2 million in credits.
Please contact Mark Ehleben at firstname.lastname@example.org or 877-435-9400 extension 1402 to learn more.