WOTC Back in Hiatus
As of January 1, 2015, the Work Opportunity Tax Credit (WOTC) is back in hiatus. Previously, WOTC was retroactively renewed to allow certifications for all hires made in 2014. During hiatus all WOTC form filing rules and guidelines are in force. The State Workforce Agencies will be accepting certification request, marking them as received timely, and holding them until such time that the legislative authority of the program is renewed. The following is Equifax guidance on WOTC participation during this hiatus.
- All timely certification requests for employees hired in 2014 have been, and will continue to be, accepted and processed as normal.
- Certification requests in the backlog for employees hired before 1-1-14 will be processed and certified as normal.
- Needs letters and information requests will be managed as normal
- For all certification requests for employees hired after 1-1-15:
- 28-day deadline still enforced
- These requests will be completely processed up until the point of determination pending a WOTC extension
Companies are encouraged to:
- Continue screening for all categories on the IRS 8850.
- Remit WOTC documents to in a timely manner.
- 28-day deadline will be enforced by SWA’s, DOL and IRS.
- The states will not be certifying requests for employees hired after the expiration until such time that WOTC is extended.
- This only applies if the post expiration cert requests were originally filed in accordance with the regulations of the WOTC program (e.g. within 28 days of the hire date).
- There is no “credit cutoff” of current certifications due to the expiration.
- Any certification received for employees hired prior to the expiration will continue to capture the normal credit amounts based on established calculation guidelines for hours worked and wages earned.
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