Transition Relief to Retroactively Claim Work Opportunity Tax Credits (WOTCs)
Did your business experience significant hiring growth during 2014? Is your business in a high turnover industry? If you can answer yes to either of these questions, significant opportunities may exist to generate federal and possible state tax credits related to hiring new employees.
Work Opportunity Tax Credits (WOTCs) are federal tax credits resulting from hiring individuals from certain targeted groups (veterans, Temporary Assistance for Needy Families, food stamp recipients, etc.). These credits range from $2,400 to $9,600 per qualified hire, depending on the targeted group. Certain state tax credits may also apply.
WOTCs have been in existence for many years; however, recent legislation provides a unique one-time opportunity for companies to retroactively claim WOTCs for eligible new hires during 2014.
Recently released IRS Notice 2015-13 provides transition relief for employers until April 30, 2015, to apply for certification regarding potentially qualified employees hired between January 1, 2014, and December 31, 2014, for all targeted groups.
Cherry Bekaert’s Credits & Incentives team is available to qualify your business for the credit, estimate potential benefits, and discuss implementation of the WOTC process. If you would like further information on our WOTC tax services, please contact Anne Yancey at 404.733.3329 or firstname.lastname@example.org.