Great News for the Work Opportunity Tax Credit. On December 18, 2015 Congress passed, and the President approved, the PATH Act (Protecting Americans from Tax Hikes Act of 2015). The law includes language that makes the WOTC retroactive for hires starting on 1/1/15. The PATH Act extended WOTC through 12/31/19, the longest extension in the history of WOTC. Included in this extension is the addition of a new Target Group; the Long Term Unemployed. The effective date of this new group is 1/1/2016.
The path to this wonderful result was a long and determined effort. This monumental and unprecedented extension could not have happened without tireless work done in Washington, meeting and educating our elected officials of both parties on the merits of WOTC. A big thanks to the Extender Coalition for their work on this as well. Our firm is proud to have worked alongside several of the highest regarded WOTC companies in the country, doing these Hill Walks and meeting directly with hundreds of members of Congress; and specifically many of the House Ways and Means and the Senate Finance Committee members, with a focus of securing an extension. These meetings helped to forward the understanding, reputation and mission of WOTC. Our work with Wharton Professor Dr. Peter Cappelli brought clarity to the positive financial impact on the economy by hiring WOTC-targeted people. For more information about the aforementioned group and the Cappelli Study, go to www.wotcmeansjobs.com.
We are very excited for our clients who can use this extension to provide a long-term incentive to hire members of the WOTC Target Groups. We are optimistic for those businesses across the country that have delayed doing the WOTC because of the tentative nature of the credit. With five years (2015-2019) to work with, this gives businesses and the confidence to hire target-group individuals and participate in the pursuit of these credits by putting the WOTC screening process into their onboarding of employees. CPA's also benefit by being able to plan and advise their clients to participate in WOTC with the longest horizon in the program's history.
The R. JEFFREY & ASSOCIATES DIFFERENCE
- Catering to the special needs of non-Fortune 1000 companies
- Available online WOTC screening. Also offers paper screening to those businesses that do not have access to a computer for screening
- Customized start-up training. Follow-up reminders to keep you in compliance with WOTC
- Payroll data feed option available
Contact our CEO, Jeff Newcorn today to find out how much credit you are leaving unclaimed each year.