Retro WOTC Ends – Program Out of Hiatus Through 2019

Situation

As part of the Protecting Americans From Tax Hikes Act of 2015 signed into law last December, the Work Opportunity Tax Credit (WOTC) Program was extended through December 31, 2019 and retroactively for employees hired from January 1, 2015. The WOTC program will be now be in a steady-state, with no hiatus planned, through then end of 2019.

The most recent “transition relief” period, which enabled companies to recapture credit opportunities back to the beginning of 2015, came to a close on August 31, 2016. During this period, companies were able to go back and screen employees for WOTC eligibility even after their official hire date. Additionally, companies did not have to comply with the 28-day deadline to submit the IRS and ETA forms.

Solution

Companies should ensure they institute best practices as part of their WOTC screening in order to achieve their maximum potential credits available to them. These include:

• Adopting integrated employee screening so it takes place on or before the employee’s first day of work
• Utilizing an online screening tool with eSignature functionality to assist with the proper, expedited filing of WOTC paperwork
• Enabling proactive “screen-in” methodologies to identify WOTC-eligible job candidates
• Outsourcing the collection of WOTC-eligibility documentation
• Using real-time tracking of program participation and results

With the right strategies in place, companies can position themselves to take full advantage of the benefits of the WOTC program. This is now even more importance given the program’s long-term extension through the end of 2019.

Value

Equifax Workforce Solutions has a dedicated team with experience in all areas of federal, state and local taxation to assist employers in capturing tax credit and incentive opportunities.

For the Work Opportunity Tax Credits, Equifax offers eSignature on both our phone-in screening system and online screening application. Any individuals who are identified as possibly credit-eligible can electronically sign a tax credit screening without the need for paper forms to be processed or managed, which may lead to a more efficient and valuable process.

Contact us to learn more about how you can take advantage of the Work Opportunity Tax Credit, or any other incentives.

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Related resources:

Press Release   |   New Research Shows  WOTC-eligible Employees More Likely to Stay on the Job

Whitepaper download   |   Dual Value of WOTC:  Reducing Turnover while Increasing Income

Demo |    Tax Credits and Incentives – identify and leverage tax credit opportunities