Update: Tax Reform and the future of WOTC

Recent Developments The Senate Finance committee voted the tax reform bill out of committee on Thursday, November 16 in a similar fashion to the House plan, suggesting an aligned strategy orchestrated by the Republican leadership.  All Democratic amendments were voted down by party line votes.  All Republican amendments were withdrawn in favor of the Chairman’s mark.  As it turns out, the bill that was voted on, does not reference WOTC, which likely means that WOTC will be left in place until December 31, 2019, based on the existing law.  Whi...
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Legislative Update: WOTC program at risk of repeal

On Thursday, November 2, 2017, the House Ways and Means Committee released a first draft of tax reform.  The Tax Cuts and Jobs Act, H.R. 1, includes many of the items listed in the tax reform framework, released by the Republicans in September, as well as additional details.  The bill proposes fewer tax brackets for individuals as well as higher deductions for middle-class families and lowers corporate tax rates to 20%, although it is estimated that it will also curtail federal government revenues by approximately $1.5 trillion over ten years. As it turns out, the proposed legisla...
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Disaster Relief for Recent Hurricane Areas

On September 29th, President Trump signed into law H.R. 3823 – Disaster Tax Relief and Airport Airway Extension Act of 2017 to aid individuals and businesses impacted by the recent hurricanes in Texas, Florida, Georgia, Puerto Rico and the U.S. Virgin Islands. Section 503 of the Act provides relief to businesses in the form of a retention tax credit to employers if the employee’s principal place of employment was inoperable and located in a disaster zones starting on...
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Update on Tax Reform and its potential effect on WOTC

On September 27, the Republicans revealed the framework of what they hope to accomplish with tax reform.  Herein is a general overview of their plan and the impact we believe it can have on the Work Opportunity Tax Credit (WOTC). Considering the proposed reduction in the corporate tax rate from 35% to 20%, deductions and credits are not necessary to the same degree that they were in the past.  Under the Republican’s framework, two popular credits are explicitly referenced to be continued: the Research and Development credit and the Low-Income Housing credits....
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UPDATE: TAX REFORM AND ITS POTENTIAL IMPACT ON THE WORK OPPORTUNITY TAX CREDIT (WOTC)

We are now eight months into 2017, and many employers are wondering what the status with tax reform is and how it might impact the future of WOTC. As we mentioned in our last update, at the start of this year, House Speaker Paul Ryan proposed a plan to reform our tax code which was designed to be revenue neutral. His plan proposed a Border Adjustment Tax (BAT) which would tax imports to t...
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Legislative update: The impact tax reform will have on WOTC

With the start of a new administration, we have received several inquiries from clients concerning the impact the Trump tax reform proposals will have on WOTC.  The fact is that no one yet knows for sure what is going to happen, but we feel it’s important to provide a comprehensive overview of what we know so far and our expectations for the future. Here’s what we know…
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BeneStream Announces Partnership with Walton Management Services, Inc. to Bring New Cost-Savings Program to Businesses

Partnership combines Walton’s Work Opportunity Tax Credit platform with BeneStream’s Medicaid Migration™ product New York, NY, June 1, 2016 - BeneStream today announced a partnership with Walton Management Services, a leading provider of tax credit and incentives consulting services. This relationship will enable the seamless incorporation of BeneStream’s signature product, Medicaid Migration™ into Walton’s award-winning Work Opportunity Tax Credit (“WOTC”) screening t...
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U.S. Department of Labor Issues Funding to State Workforce Agencies

State Workforce Agencies (SWAs) responsible for the administration of the Work Opportunity Tax Credit (WOTC) Program are working diligently to process retroactive and current WOTC Program certification requests.   
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WOTC Program Transitional Relief Announced

Recently released IRS Notice 2016-22 provides for a transitional relief period for the Work Opportunity Tax Credit (WOTC) Program, providing businesses with the opportunity to retroactively capture the WOTC Program for hires made prior to its reauthorization i.e., the “hiatus” or period of time in which the WOTC Program was expired due to Congressional inaction on the tax extenders bill.  Businesses may now retroactively screen and pursue the WOTC Program for employees that were not screened during hiatus or, for those businesses that chose to do so, allows for c...
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PATH Act Effects Code Section 179

The PATH Act increased the expensing break for qualifying real estate improvements. It also made it easier for improvements to qualify for bonus first-year depreciation, but the determinations of qualifying improvements and expenses are more complex.  The detail of these new complications is lengthy, but, as summarized by Thomas Reuters in their Checkpoint New dated March 8, 2016, as a general rule, the cost of commercial real estate improvements is recovered over a period of 39 years via straight line depreciation only.  “However, for specially defined categories of r...
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