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Tax Credits Blog

WOTC still not authorized for 2015

The latest is that we expect the programs to be reauthorized through 12/31/16 and be attached to the Highway Bill due out at the end of the month.  Having said that, its not a guarantee - just a best guess by our coalition executives in Washington.

 

Its important that you continue sending in the forms to the agencies as its not assured that the IRS will open up 2015 to those who didn't file as they've done in past years.  To be safe, work within the 28 day window from hire date and make sure the new hire signs the form on or before their hire date.

 

Ken BRice

 

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Turn your Human Resources Department into a PROFIT CENTER

Turn your Human Resources Department into a PROFIT CENTER

 

Enterprise Zone and Work Opportunity Tax Credits represent an easy way to recapture your tax dollars, improve cash flow and increase company profits.

 

The Work Opportunity Tax Credit (WOTC) is a Federal tax credit that is available to employers for hiring individuals from certain target groups who have consistently faced significant barriers to employment.

 

Employers who have locations in Empowerment Zones are eligible for up to $3,000/year per qualified employee with claims in tax credits going back to 2014.

 

All for-profit Employers with new hires in any of the categories listed below are eligible for tax credits.

 

The qualifying target populations include:

  • Temporary Assistance for Needy Families (TANF) Recipient – $2,400

  • Recently Released Ex-felons -$2,400

  • Designated Community Resident – $2,400

  • Vocational Rehabilitation  Client – $2,400

  • Supplemental Nutritional Assistance (SNAP) Recipient – $2,400

  • Supplemental Security Income Recipient – $2,400

  • Long-Term Family Assistance (TANF) Recipient – $9,000

  • Veteran Unemployed four weeks – $2,400

  • Veteran Unemployed six or more months – $5,600

  • Recently Discharged Disabled Veteran – $4,800

  • Disabled Veteran Unemployed six or more months $9,600

 

EmployerIncentives.com provides tax recovery services enabling your HR staff to document and recover valuable taxes spent.

THE FUNDS RECOUPED ARE YOUR HARD EARNED DOLLARS

 

To Learn more, call Ken Brice at 888 236 7339  ext 706

15 years experience: Better Business Rating of A+

 

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Most Companies overpay their Federal Income Taxes

moneyMillions of Business owners overpay their Federal taxes by not claiming their eligible tax credits. Companies located in Federal Empowerment Zones can claim up to $3,000 per year for each eligible employee with claims going back to 2013. Typically 20-25% of all employees are eligible for the credit with the average credit being approximately $2,000. 

 

 

Basic Math – If you’re located in a Federal Empowerment Zone, take the number of employees paid last year, multiply by 20% and then by $2,000 to get the estimate for 2014 Empowerment Zones Credits – then, multiply that number by 3 to get the amount of money left on the table for the past 3 years. Call us to find out if you’re in the right zone.

 

 

Any For-Profit companies are eligible for the Work Opportunity Tax Credit program which has been around since 1996. Credits for hires in 2015 are about to be approved by Congress and employers are strongly advised to follow two simple rules to claim their 2015 credit.

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Read more: Most Companies overpay their Federal Income Taxes

Update from Paul Suplizio, President of WOTC coalition

June 17, 2015 Ways and Means Chairman Paul Ryan confirmed, in a speech to the CFO Network yesterday, he’s in active discussions with Treasury for a corporate tax reform deal in the next few months. The priority will be on overhauling international taxes, raising revenue by taxing offshore income of multinationals on which US taxes are currently deferred. But all corporate tax provisions will be considered, which means tax extenders like WOTC. Ryan is talking to Treasury Secretary Lew because Congress agrees the road to tax reform must be bi-partisan—for Republicans to get a corporate tax cut “down payment” on broader tax reform, the White House must have a voice at the table. That the White House supports permanent WOTC is of course an advantage as we go into these talks. Members of Congress in both parties see reforming international taxes as the major funding source for a long-term highway bill, which is due to expire July 31st. When asked if he would consider it, Ryan told the CFO’s, “that would work.” The firms who will have to pay those taxes are raising objections, but in the past they reconciled to being taxed when Congress offered a low rate. Even a low rate raises a lot of revenue. The Senate Finance Committee’s work group on international taxes must report recommendations to Chairman Orrin Hatch on June 26th. It’s known the tax changes they’re considering will generate major revenue that could be used to fund a highway bill. Still, for anything significant to emerge from the Senate in the short time window, bi-partisan consensus on a bill is needed and the Senate mood is very contentious right now. Nevertheless, Chairmen Ryan and Hatch are on a path to writing a corporate tax reform bill during the next three months, thus a decision on permanent WOTC could come anytime in that window. PAUL E SUPLIZIO President, WOTC Coalition .

CALL TO ACTION - the time is now!

If you want to continue receiving tax credits for hiring as well as Empowerment Zone credits, here's what you have to do - a letter from Paul Sulpizio - WOTC Coalition - its a lot of good reading and if you want the FACT SHEET mentioned in the letter, email me at This email address is being protected from spambots. You need JavaScript enabled to view it. and I'll be sure to get it to you.

 

Ken Brice

 

 

March 23, 2015

 

Bi-partisan bills are being prepared in the House and Senate to make WOTC permanent.  When they are introduced, we will be calling on Coalition members who live or have operations in all fifty states to reach out to their congressperson and senators to co-sponsor our bills.

 

Those bills will be assigned to the Ways and Means and Finance Committees, so now is the time for us to concentrate our efforts mainly on Republican members of those committees to lay the groundwork for our coming push to report a bill making WOTC permanent.

 

Key to this campaign will be our efforts to persuade Ways and Means Chairman Paul Ryan.  In the last Congress he spent prodigious energy, in fact-finding and in several speeches, to shape public opinion toward   reform of the nation’s poverty programs. 

 

Chairman Ryan’s efforts are summed up in a discussion draft he wrote last year which may still be read at the Budget Committee’s web site, www.budget.house.gov, click on “Expanding Opportunity In America.”

 

Now as Ways and Means Chairman, Mr. Ryan is able to put his ideas to work because Ways and Means governs not only tax programs related to poverty, like the child tax credit and earned income tax credit, but also Medicare and Medicaid, Welfare and Social Security!

 

He now has entire subcommittees and their staffs in each of these areas working on carrying out his ideas, and they have a detailed roadmap—just go back to www.budget.house.gov and click on “The War on Poverty: 50 Years Later” and you’ll see it’s as detailed a roadmap as anyone can conceive.  His goal is easy to infer from the first line, “There are 92 poverty programs . . .!”

 

Whenever WOTC has come up, Mr. Ryan has asked questions about its efficacy as a component of the nation’s anti-poverty safety net.  To us, he’s been making clear that, in his mind, whether WOTC stands or falls in tax reform will depend on the answer to his question.

 

 

This may be our only avenue to making WOTC permanent—a fight we have to win or we can forget about temporary extension.

 

When WOTC comes up in the Senate, we can expect Chairman Hatch to be relatively indifferent to its fate—he has bigger fish to fry.  But if Chairman Ryan is persuaded that WOTC should be retained, Senator Hatch is likely to fall in line.  We should remember Mr. Ryan is a man who always likes to have facts and analysis, as well as the votes, on his side.

 

Chairman Ryan’s basic approach is to consolidate revenue streams of the 92 poverty programs into a single block grant to the states, with standards and safeguards set at the Federal level.  A big question he must face is what programs lend themselves to consolidation in a block grant, and which ones must be kept as national programs—not delegated to the states.

 

Mr. Ryan has already decided the earned income tax credit is a core anti-poverty program he want to retain at the national level—he’s come out publicly for this and more.  Having decided to keep EITC as core anti-poverty, he also wants it improved at significant cost—you may read his reforms at “Expanding Opportunity In America.”  Coincidentally, President Obama agrees with Chairman Ryan’s expansion and includes it in his budget.

 

In the attached Fact Sheet on WOTC And The Poverty Safety Net, we make the case that WOTC has equal merit for being retained as companion to EITC in the core safety net.  We start with Mr. Ryan’s principle that  every able-bodied individual must make a commitment to work if they take government aid.  In other words, the goal of every poverty program, now and in the future, should be a job.

 

 

To us, it’s hard to conceive any better way for WOTC to fit into Mr. Ryan’s plans than as core component of his anti-poverty plan for a block grant, because WOTC’s object has always been jobs.  And because it is targeted, it has always provided mainly jobs for the poor.  It has more than three decades of proven effectiveness as a national program to give an extra boost to workers on public assistance and thus meet the test for poverty or near poverty.

 

In the fact sheet, we also point to how Mr. Ryan can improve WOTC if he decides to retain it—we believe he’s bound to ask this question.  So now is the time for us, as a group, to compile the changes we’d like to make for a more expansive and efficient WOTC functioning as part of the nation’s anti-poverty safety net.  Let’s hear your ideas.

 

We’ve had the benefit of good fact sheets, cited at our web site, in the past, but now we have a fact sheet with a new focus on the anti-poverty safety net.  We ask that you study it carefully and not be bashful about replying with your criticisms, comments, and recommendations.

 

But don’t let this stop you from going to work—get out your roster of Ways and Means Committee and Finance Committee members, find those from your state or states where you have clients or operations, and send them a letter from someone in the state or district, or from someone (yourself) who represents clients or operations in the state or district, reciting who you are and what you do and making the case that WOTC is on the table for consideration by the members of these committees so you are writing to express your views.  If there’s nobody from you state or district, write the chairman and ranking minority member of the committee.

 

Don’t be mistaken, a letter is to state your case—it’s only a beginning—to be effective you must follow it up with a phone call to the principal’s tax legislative assistant and subsequently meet with the principal and stay continuously in touch with the tax L.A. and principal  Lobbying isn’t just a touch—it’s a lunge for the jugular because it’s make or break time.

 

In every communication do not fail to state clearly what you want, and end by stating what you are asking the congressperson or senator to doNever forget the bottom line!  

 

A good opening for your letter to a member of the Senate Finance Committee is:

“In the past two months, Chairman Hatch has held hearings on tax reform, and recently he invited public comments on every aspect of tax reform.  I am writing to explain the the importance of the work opportunity tax credit to the poverty safety net and why it should be made permanent in tax reform. . . .”

 

A good opening for your letter to a member of the House Ways and Means Committee is:

 

“Chairman Paul Ryan has repeatedly invited comments from the public on all aspects of tax reform.  One of the areas of special interest to the Chairman is reform of the nation’s poverty programs, and in that connection I’d like to comment on the relevance of the work opportunity tax credit to the poverty safety net. . . .”

 

PAUL E SUPLIZIO

President, WOTC Coalition

 

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