The President has signed into law the Tax Increase Prevention Act of 2014 that extends the Work Opportunity Tax Credit (WOTC) retroactively from Jan 1, 2014 through December 31, 2014. The measure also includes a retroactive extension of other federal hiring credits – both the Federal Empowerment Zone and Indian Employment Credits. This positive result will create certainty for employers as they plan their tax and business strategies going forward.
Equifax Tax Credit management systems are fully compliant with the legislative regulations of the WOTC program, and Equifax has been processing and submitting WOTC certification requests on behalf of our employer clients to the State Workforce Agencies since the inception of the hiatus.
Equifax is working closely with the Department of Labor (DOL) to encourage an expedient notification to the State Workforce Agencies to release certifications earned during 2014. Until now, companies have been dutifully screening their employees for WOTC without any guarantee that these valuable tax credit programs would be renewed and that the potential credit would be realized. During the hiatus, the State Workforce Agencies have been processing all WOTC certification requests up until the point of certification, but have been unable to issue such certifications for individuals who began work after January 1, 2014. We anticipate that the DOL will take action outside of the normal Training and Employment Guidance (TEGL) issuance procedure in order to speed along the certification process following this lengthy hiatus.
If your company is interested in receiving more information on this or any other credit, please contact Pete Krieshok of Equifax Workforce Solutions at 314-214-7325 or by email at Pete.Krieshok@equifax.com.
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