Hello again from WOTC Solutions:

It’s well-worth taking a moment to learn the recent changes Congress made to the Work Opportunity Tax Credit law which you have used to save money in the past.  As of December of 2015 this law has finally become stable.

As a result of these changes (which probably put money in your pocket!):

• All your 2015 hires are potentially eligible to earn you substantial reductions to your tax bill.  
• There is a new category of tax credit eligibility -- the Long Term Unemployed. To be eligible they only have to be unemployed for the 27 weeks before you hired them!  Many of your 2016 hires will be eligible for this additional tax bill offset. [NOTE: this credit is so new the IRS has not updated their form so WOTC Solutions has designed a temporary form to harvest these savings until the new form is published.  We make this form available to all our present and former clients.]
• There is an additional tax credit your company may qualify for -- hiring a person who lives in what’s called an Enterprise Zone. It’s a tax credit for hiring someone who lives in a high unemployment area. We screen all your employees for EZ eligibility. Please note that Congress has phased this credit out at the end of 2016 so don’t miss out on the money savings you can obtain this year and this year only.

What do I do to make sure I get this money?

• The POA you issued previously has to be renewed. Click here to download the updated IRS POA form that we need to file with your state’s WOTC Coordinator to do the work to obtain these savings for your business. Fill out and sign the form and then scan and email it to us at [email protected].  [As a reminder, this form 2848 is strictly limited to enabling us to communicate with the IRS to obtain the tax credits you are entitled to by law and nothing else.]  
• Or, if you prefer, suited to your specific schedule, we’ll call you to answer any questions about all these changes.  You can set that call by clicking here 

Just a reminder that we do the work for you and charge only a small portion of what you actually receive in the credit.  And, it’s also important to remember that there is no charge if you do not receive the credit, and no charge until your tax credit is actually obtained and in hand.

In addition to handling all necessary appeals of WOTC Coordinator denials of an employee’s eligibility for you to get you the credit, our services include the following:

1. Create, maintain and store all client forms necessary for WOTC Certification and earning the credit for your business. Screen new hires for WOTC eligibility, and manage the entire process necessary to obtain all credits your company is due.
2. Manage all communications on your behalf with your state’s WOTC office and the IRS regarding the verification process and your application’s status. (And we keep them available for the dreaded audit.)
3. Track your WOTC-eligible employees’ hours and wages to provide you with the maximum value of credit.
4. Provide you with regular updates.
5. Keep your company current with all changes in the WOTC law. (For example, did you know that since January 1, 2016 any of your employees who was unemployed for 27 weeks and earned a little unemployment  makes you eligible for this money?)
6. Create IRS forms necessary to claim any earned tax credit Certification.

We look forward to hearing from you either by your returning the POA form to start the process or by scheduling a call (on your schedule) to answer any questions you have.

Respectfully,

Your friends at WOTC Solutions.

P.S. Don't forget to fill out and return the updated IRS POA form so we can submit your WOTC eligible employees!

HIGHLIGHTS OF THE NEW WORK OPPORTUNITY TAX CREDIT LAW

• The WOTC law was renewed as part of the “budget deal” signed into law by President Obama on December 16, 2015.   (Click here for full text of Rules Committee Print Order 114-40.)

• This renewal is for 5 years, back-dated to January 1, 2015 through the end of 2019.  The renewal period now provides this employer incentive with much needed stability.

• A new category was added: “Long-term unemployed” is defined as someone seeking work for more than 27 weeks. This is important for reentry efforts as employers of felons who were released more than a year ago will often be eligible under this additional category.

• The IRS is not current on the necessary forms as of this date (1/19/16).  They have issued a temporary authorization allowing the state WOTC offices to continue to use the current forms until the new ones are issued.
• The link to the current 8850 version is IRS form 8850  
• The link to the current 9061 is IRS Form 9061.  
• The link to current form 3800 is IRS Form 3800  
• The link to current form 5884 is IRS Form 5884.  

    [NOTE: THESE FORMS WILL CHANGE WHEN THE IRS ISSUES ITS REGULATIONS

ON THE RENEWED WOTC LAW WHICH WILL HAPPEN SOMETIME IN 2016]

• Employers who hired a WOTC-eligible employee since January 1, 2015 are not subject to the normal requirement of applying for the credit within 28 days of the employee’s “start date.”  (Remember: This means all employers who hired a felon in 2015 are still eligible to obtain this incentive.)

• There is some confusion about whether 2016 new hires are subject to the 28-day rule. The WOTC Coordinators have asked that we treat 2016 hires as if they are subject to that rule to make certain eligible employers are not disqualified under a subsequently adverse administrative decision.

• Quick and accurate answers to WOTC questions can be obtained by emailing them to: [email protected] or by calling 888-313-5696 and following the directions for employers.  For additional WOTC cards click: Order WOTC Cards