WOTC Look-Back Period Extended

Jun 20, 2016

wotc look-back period extendedThe IRS announced last week that businesses that qualify for the Work Opportunity Tax Credit (WOTC) can continue to claim credits until August 31, 2016 for employees hired on or after January 1, 2015. This look-back period had expired on May 31st, but a recent notice from the IRS gives employers an extra 3 months of transitional relief and the opportunity to claim more tax credits for employees hired from specific target groups.

Employers can earn a tax credit of between $1,200 and $9,600 per employee, depending on the target group of the new employee and the number of hours worked in the first year. Employees must work at least 120 hours in the first year of employment to receive the tax credit.

Eligibility is determined by hiring employees from the following groups:

• Veterans
• Temporary Assistance for Needy Families (TANF) Recipients
• SNAP (food stamp) Recipients
• Designated Community Residents
• Vocational Rehabilitation Referral
• Ex-Felons
• Supplemental Security Income Recipients
• Summer Youth Employees

View more details about these groups here.

How GTM Will Help

Our process is simple – we provide a link to an online portal where your employees answer a few questions to determine eligibility. We then file your claim with the IRS and state agencies. Once the claim is processed, you’ll be notified how much credit you will receive, and those credits will be applied to your next tax returns.

Get started now to take advantage of the look-back period and maximize your tax credits. For clients, contact your sales rep or Account Manager and they’ll provide the details. Want to become a client? Contact us for more information at (518) 373-4111 or get a free payroll quote here.

Free HCM Brochure

To efficiently manage your payroll, HR, timekeeping, benefits, and more, you need all employee data accessible 24/7 from a secure, cloud-based solution. No duplicate data entry, no importing and exporting. You’ll reduce errors, increase productivity, and save time with isolved, GTM’s payroll and HR platform.

Enter your information in the form below to download GTM’s HCM brochure.

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