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Tax Credits Blog

New York will take a year to catch up

Talked to Bonnie Lance today, WOTC coordinator, and she indicated that it will take the better part of this year to catch up on 2012 and 2013 certifications. She commented that they had over 100,000 applications to process, they didn't have the manpower (nor budget) to move any faster. Companies are going to have to file their 2012 returns without the lion's share of the credits if they are a NY company.

 

Other states have almost already caught up - Pennsylvania, Maine, Virginia are three of the best.

 

We continue our quest to make permanent changes in the tax code to accomodate these credits but its an uphill battle with all the positioning in Congress, the Senate and the White House.

 

Ken Brice

 

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Forms are starting to come in

Its been a long year without any processing of applications that have been sent in. Some states are getting current quickly (Virgina) while some states are struggling with their new software (Pennsylvania) and others are just slow (New York has over 100,000 applications to deal with).

It's unlikely that all states will process all 2012 forms by 3/15 (for corporations) or even 4/15 (for LLCs, S-Corps) so companies have a choice. Choice 1 is to file an extension - pay the tax you owe (or claim the refund) without credits - then on extension day (9/15 or 10/15) file with the credits and get money back. The other option is to file on time and take what credits are in then take the rest when you file the 2013 returns. The best advise I can give you is to check with your tax professional to see what his advise is.

At EmployerIncentives.com we're phasing in the credits as we get them so those companies who want to file by the tax deadline and not use the extension will get their up to the minute credits.

We really need to try to make this part of a permanent tax credit so we don't need to go through this every time the programs expire.

 

Ken Brice

 

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Two WOTC Categories were not re-authorized

Disconnected Youth and Unemployed Vets (not from the Vow to Hire Vets category) - these were two categories that expired at the end of 2010 and were not included in the re-authorization of the WOTC program through 12/31/13.  State agencies are returning any applications sent in during 2011 and 2012 that were for those categories.

 

We have started seeing the states turn around the applications but there's only a dribble so far - I hope that the can get the flow started so that companies can get their 2012 credits by tax deadline date of 3/15 - 4/15 for individuals.

 

Ken Brice

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FINALLY - WOTC has been extended

WOTC and EZ credits have been extended retroactively from 1/1/12 through 12/31/13 - all paperwork that has been sent in to the state agencies will now be reviewed and we should start seeing certifications flowing in a week or two.  We will be able to generate credits for two years in 2013 - one for 2012 and one currently for 2013.

 

Good news.

 

Be Well.

 

Ken Brice

This email address is being protected from spambots. You need JavaScript enabled to view it.

609-252-0044

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FINALLY - WOTC has been extended

WOTC and EZ credits have been extended retroactively from 1/1/12 through 12/31/13 - all paperwork that has been sent in to the state agencies will now be reviewed and we should start seeing certifications flowing in a week or two.  We will be able to generate credits for two years in 2013 - one for 2012 and one currently for 2013.

 

Good news.

 

Be Well.

 

Ken Brice

This email address is being protected from spambots. You need JavaScript enabled to view it.

609-252-0044

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