Tax Credits Blog

Still Waiting

We sit and wait for the Congress to get around to renewing the WOTC program which expired on 12/31/13.  States are continuing to allow us to send them forms although they won't act on them until the program is re-authorized.  The two main criterium of signing the 8850 on or before hire date and the 28 day mailing window is still in place.  Do you think Walmark, Home Depot, and other large employers can take the earnings hit of no tax credits?  Just for fun, using our company averages, Walmart has 2.1 million employees.  Assuming 25% turnover (probably higher) they're going to hire 525,000 people a year.  Using a conservative 12% eligibles, that's 63,000 eligible people.  Using an average credit of $1,500 each (I know its higher since Walmart has targeted veterans who can be as high as $9,600 in creits) thats $94,500,000 in lost profits if the programs are not extended.  Not even Walmart can absorb that kind of loss.