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New bill would expand WOTC to include Foster Youth

According to Yahoo News, a group of congressmen led by Jim McDermott of Washington introduced H.R.5947, the "Improved Employment Outcomes for Foster Youth Act of 2016". A Senate companion bill will also be introduced by Senator Casey of Pennsylvania. 

This bill amends the Internal Revenue Code of 1986 to include transition age foster youth as eligible for purposes of the Work Opportunity Tax Credit (WOTC). Employers may be eligible to receive a credit of up to $2,400 annually for each foster youth hired that is not yet 27 years old and who have been in foster care.

This would be the 11th group in the Work Opportunity Tax Credit. As always, we will keep you informed of the bill’s progress in future tax credit updates.            

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Senate Finance Committee approves two year extension for Work Opportunity Tax Credit (WOTC) and other tax extenders

By a 23-3 vote, the Senate Finance Committee passed dozens of popular business tax credits and deductions last week. Included in the passage were two year extensions through December 31, 2016 for the Work Opportunity Tax Credit (WOTC), Indian Employment Tax Credit and Empowerment Zone Credit.

Senate Finance Committee Chairman Orrin Hatch (R-Utah) and Ranking Member Ron Wyden (D-Ore.) issued the following statement concerning the passage:

“Today the Finance Committee advanced a bipartisan bill aimed to help both families and businesses. By allowing Committee members to work their will, the Committee succeeded in passing a number of widely-supported tax provisions that will provide some certainty in the tax code for the next two years.  We look forward to continuing to work together in a bipartisan fashion to enact tax extenders legislation.”

The next step would be for the House and full Senate to take up the legislation when they return from their summer recess in September. As always, we will keep you informed of any progress in future blog updates. 

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Work Opportunity Tax Credit (WOTC) and other employment tax credit programs finally passed through 2014

On Friday December 19th, President Obama signed HR 5771, also known as the Tax Increase Prevention Act of 2014 into law. The bill had passed the Senate two days earlier by a 76-16 margin.

HR 5771 renews over 50 tax credit programs on a retroactive basis from January 1, 2014 through December 31, 2014. Included in this legislation were extensions for WOTC, Indian tax credits and Empowerment zone credits.

Speaking to Forbes magazine, Sen. Orrin Hatch (R-UT) referred to the bill as “quite literally the best we could do.” During the course of this Congressional year, bills with two year extensions (with some programs receiving permanent extensions) were considered and were even close to approval. However, partisan bickering prevented any type of long range compromise this year. It will be up to the new Congress to reach a longer extension when they return in January.

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New Chairman of Senate Finance Committee favors renewal of Tax Extenders this year

Oregon’s Democratic Senator Ron Wyden, the new chairman of the Senate Finance Committee, recently told the Daily Beast that he is going to start working on extensions for the 50 or so tax extenders which include employment based credits such as the Work Opportunity Tax Credit, Indian Tax Credit and Empowerment Zone Credit.     

Wyden has a well-earned reputation for collaborating on bipartisan proposals including a tax overhaul project with former Republican Senator Judd Gregg and health care reform with Republican Congressman Paul Ryan. In the article, Wyden said that his hope is that tax credit extensions this year could be a bridge or “trampoline” to more comprehensive tax reform in the future.

As we have mentioned many times before, whether it is another short term extension of 1-2 years or a permanent extension as proposed in the latest White House budget, we would love to see Congress take up the tax extender issue soon because of the great need for and the popularity of employment based tax credit programs like the Work Opportunity Tax Credit, Indian tax credit and others. It is our hope that Senator Wyden and his fellow legislators will be able to accomplish this task in a bi-partisan way very soon!

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Senator proposes permanent extension of “Hire a Hero” bill as way to encourage businesses to hire Veterans

According to the Charlotte Observer, Senator Kay Hagan of North Carolina has introduced legislation that would make the “Hire a Hero” section of the Work Opportunity Tax Credit (WOTC) permanent.

The original “Hire a Hero” bill was passed in 2011 and was set to expire at the end of next year. The legislation established four categories of veterans who are eligible for WOTC certification with a maximum certification amount between $2,400 and $9,600 per individual. The Veterans with a service-related disability would qualify for the higher amount.

Hagan’s bill would not only make the credits permanent but would also extend the benefits to businesses that hire members of the U.S. National Guard and the Reserves.

Hagan also pointed out in the article that, while the national unemployment rate hovers at 7.2 percent, veterans of the wars in Iraq and Afghanistan have an unemployment rate of 10.1 percent.

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California State Assembly votes to eliminate California Enterprise Zone program as of December 31, 2013

On June 27, 2013, the California State assembly passed AB 93 which will effectively eliminate the California State Enterprise program as of December 31, 2013. This action was actively pursued by Governor Jerry Brown. As was reported in last month’s blog entry, the zones will be replaced with three new initiatives:

An employment credit for small businesses that hire long-term unemployed workers, unemployed veterans, and people receiving public assistance. The credit would be $3,000 per employee.

Sales tax exemptions for manufacturing and biotech research industries.

Tax credits and incentives for companies locating or expanding businesses or retraining workers.

Since the former program does not expire until year end, all qualified employees hired before then may qualify for up to 5 years of tax credits for their employers.

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California Governor proposes replacing State Enterprise Zones with three new programs

In 2010, California Governor Jerry Brown proposed eliminating the California Enterprise Zone program but he was unsuccessful due to strong opposition and the program remained unchanged. Last week, Governor Brown again proposed eliminating the zones but this time, he has proposed replacing them with the following three new programs:

An employment credit for small businesses that hire long-term unemployed workers, unemployed veterans, and people receiving public assistance. The credit would be $3,000 per employee.

Sales tax exemptions for manufacturing and biotech research industries.

Tax credits and incentives for companies locating or expanding businesses or retraining workers.

California has had massive budget deficits in the recent past and, as a result, has modified or eliminated many programs. The California Enterprise zone program, which was established in 1984, may become the latest program to undergo change. This change may happen despite the fact that the Enterprise Zone program has been very successful in creating jobs and stimulating business in depressed areas of the State.

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HR Screening Services is a proud sponsor for the Emmaus Community Kentucky Derby Gala!!

Recently, the Emmaus Community of Pittsburgh had their 6th annual Kentucky Derby gala at legendary Oakmont Country Club.  The night was a great success and HR Screening Services was proud to be the entertainment sponsor for this year’s event!

The Emmaus Community of Pittsburgh is an outstanding organization that  has been providing permanent homes, respite care, and advocacy for people with intellectual disabilities and autism for more than 20 years. 

Emmaus currently operates six permanent homes in neighborhoods throughout the Greater Pittsburgh area. In these homes, individuals with intellectual disabilities receive 24-hour support and supervision.

Emmaus is responsible for all aspects of care, including assistance with daily living skills, opportunities for socialization and recreation, health care maintenance, medication administration, and finding suitable employment opportunities.

Visit the Emmaus website www.emmauspgh.org  If you'd like to find out more about a wonderful organization or are interested in making a donation

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White House includes permanent extension for Work Opportunity Tax Credit and Indian Employment Credit in their 2014 Budget

Recently President Obama submitted his proposed budget for 2014. The 3.7 billion dollar plan proposes new investments in infrastructure and education, major new taxes for the wealthy, and reforms aimed at reducing the cost of Social Security and Medicare. The new budget also promises that “the new initiatives in the plan are fully paid for, so they do not add a single dime to the deficit”.

Included in the budget were permanent extensions for both WOTC and the Indian Employment Credit. This is great news! As you know, these employment credits are usually included in the large group of “tax extenders” that expire and must be renewed on a continual basis. By proposing a permanent extension, the White House seeks to include these credits with a select group of extenders that can be extended permanently thus eliminating the yearly uncertainty.

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IRS Notice 2013-14 allows "rare" second chance on WOTC submissions

Great news!!

New IRS Notice allows rare “second chance” for employees hired in 2012 and 2013 to receive a Work Opportunity Tax Credit (WOTC).

Employees hired in 2012 or 2013 that did not complete WOTC paperwork or had their paperwork submitted late are now eligible for lucrative tax credits. All new submissions must be completed and submitted to the proper agency by April 29, 2013!

IRS Notice 2013-14 waives the standard 28 day deadline for submitting WOTC paperwork until April 29, 2013 for employees meeting the following conditions:

Employees hired from January 1, 2012 through March 31, 2013 for all WOTC groups except for Veterans.

Employees hired from January 1, 2013 through March 31, 2013 for Veterans groups only

This is absolutely fantastic news for all companies especially if you are a company that did not participate in the program or had low program compliance or participation over the last 15 months.

At HR Screening Services, we are working closely with all of our clients to ensure that we process all eligible employees by the April 29th deadline.

If your company is currently not participating in the Work Opportunity Tax Credit program, this is a "once in a lifetime" chance to obtain credit for past hires. Call us today at [phone] and we can get you started quickly and maximize your tax credit earnings!

Don’t lose out! This is the most generous allowance the IRS has offered for the WOTC program since the program's inception,

Don’t lose out! You pay for tax credit programs like WOTC with your taxes. Don’t miss the chance to receive your fair share!

Don't lose out!  The standard 28 day deadline returns April 30, 2013.

Don’t lose out! Only 38 days (and counting) to the deadline!

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Senate bill would expand the Work Opportunity Tax Credit to include all recently discharged veterans

Senate Finance Committee Chairman Max Baucus and fellow Montana Senator Jon Tester have proposed legislation that would expand the Work Opportunity tax Credit (WOTC) to allow employers to claim a credit of up to $2400 when hiring any recently discharged veterans.

The bill would make any veteran discharged within the last 5 years eligible for a credit. The legislation also significantly simplifies the certification process with new paperwork procedures. In the bill, veterans would only have to show their discharge papers to show they left the service within five years. 

The national unemployment rate among veterans that have served since the 911 attacks was 10.8 percent in December which is significantly higher than the nation's overall 7.8 percent jobless rate. 

As always, we will keep you updated on the progress of this bill in future updates.  

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Fiscal Cliff agreement includes two year extensions for major employment tax credit programs

Late in the evening on January 1st, Congress voted 257 to 167 to approve the American Taxpayer Relief Act of 2012. The agreement means that the “fiscal cliff” will be averted and came less than 24 hours after the Senate overwhelmingly approved the legislation.

We are very excited to report that the Work Opportunity Tax Credit (WOTC), Indian Employment Tax Credit and Empowerment Zone Tax Incentives all received two year retroactive extensions in the bill. All three programs are now passed through December 31, 2013. 

Previously, the programs had expired on December 31, 2011. For the Work Opportunity Tax Credit (WOTC), a retroactive extension means that it is possible to receive a WOTC tax credit for a new hire in 2012 as long as the new hire completed the tax credit paperwork on or before his first day of employment in 2012.

There are no new programs or groups in this legislation. However, there has been bipartisan discussion about a new WOTC group for those impacted by Hurricane Sandy. We are hopeful that the Hurricane Sandy group may be added later in the year. 

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White House includes tax extenders legislation in their first proposal in “Fiscal Cliff” discussions

According to the Washington Post, the White House has included tax extenders (which have included the Work Opportunity Tax Credit (WOTC), Empowerment Zones and Indian Employment Credit) into their first proposal in “Fiscal Cliff” discussions with Republican leaders.The proposal also includes an AMT (Alternative Minimum Tax) patch, a 50 billion stimulus package in FY13 and an extension of the payroll tax holiday. The proposal also calls for an immediate increase in top marginal tax rates, as well as capital gains and dividends.

As has been well documented in the media, there is much negotiation and discussion ahead before any kind of agreement can be reached. Like any negotiation, neither side really wants to compromise too early to avoid being seen as “weak” or as “caving in” to the other. For this reason, many lobbyists are predicting that  a deal will be reached sometime around the 18th or 19th of December right before Congress finishes before Christmas

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Consumer Financial Protection Bureau (CFPB) to oversee consumer protection issues including the Fair Credit Reporting Act

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 created a new agency known as the Consumer Financial Protection Bureau (CFPB).  The CFPB now has broad authority over many areas including banking, financial services, financial products, mortgages, financial investors and consumer protection.

 The CFPB is now responsible for writing rules to protect consumers from unfair or deceptive financial products, acts or practices. The CFPB also has also assumed enforcement of major consumer protection laws including the Fair Credit Reporting Act (FCRA) which regulates consumer reporting agencies such as HR Screening Services.

For more information, be sure to visit the CFPB’s website. It can be found at http://www.consumerfinance.gov/

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Passage of Tax Extenders legislation delayed until post-election session

As the Wall Street Journal and other outlets have reported, both houses of Congress have allowed the passage of a group of popular tax extenders including the Work Opportunity Tax Credit (WOTC), Empowerment Zones and Indian Employment Credit to delay until the post-election session. 

There was optimism in August when the Senate Finance Committee agreed on a bill known as the Family and Business Tax Cut Certainty Bill of 2012 that the extenders may gain passage before the break.  However, the House had no plans to take up its own version of the extenders legislation until the lame-duck session that will follow the election, making final action before the election all but impossible. There is widespread confidence on both sides of the aisle that the tax extenders will pass in the post-election session because the programs are popular with both parties.

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Senate Finance Committee agrees on bill extending WOTC and Empowerment Zones through December 31, 2013

On August 2nd, good news finally arrived from Washington as the Senate Finance Committee approved a $205 billion package of expired and expiring tax provisions known as “tax extenders”.  During a partisan election year, the committee demonstrated a rare moment of bipartisanship as all of the committee’s Democrats and more than half the Republicans voted for the measure.

The bill known as Family and Business Tax Cut Certainty Bill of 2012 renews the Work Opportunity Tax Credit (WOTC) and Empowerment Zones for two years but also eliminates over 25% of the other traditional tax breaks. Other tax breaks that were included in the bill include the Indian Employment Tax Credit, the Hire a Hero Veteran credit and a two year patch for the Alternative Minimum Tax (AMT).

The bill may undergo additional changes once it reaches the Senate floor in September or after the elections in November. At that time, the bill will eventually have to be reconciled with an extenders package from the House. Though it still has a long way to go, this latest action provides a very realistic hope that the programs will be passed soon!