WOTC update

As you know, the tax incentive programs commonly known as the Work Opportunity Tax Credits and Empowerment Zones expired at the end of December 2011 and have not been reauthorized.

It really unclear as to when they will be reauthorized at this point with all the dissention in Washington and it would appear very little will get done between now and the next election.

Of course if things start turning around before then Congress may try to renew these programs as a way of spurring on improved employment numbers. Recently, an extension of the programs was included in a larger bill that was defeated but not by a large margin. Typically that is what happens as we've been through this drill 4 times in the past - a congressman in favor of the extension will add it to another bill that's being considered in the hopes that it will pass along with the other bill. There doesn't seem to be too many legislators not in favor of the program - it just isn't big enough to go through on its own.

All the Federal Agencies that we deal with are still in place, automation is still underway in a few states, PA, NJ, FL, CO to name a few and the coordinators are asking us to continue to send in the forms as the 28 day window limitation is still in place. Forms received within 28 days of hire date will be accepted albeit put in a box for later review. Once the program is reauthorized, they'll open that box and start the processing of the forms received. The only downside to all this is that if someone is hired and the state needs additional information, ie driver's license or proof of address, if they wait too long to ask, that employee may have left the company and getting the missing information is impossible.

If you are a client of ours, continue to send the forms in. We'll continue to monitor what's going on in Washington and let you know as soon as we know when the program has been reauthorized.