518-373-4111
The 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.
