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...
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...
WOTC Extension Discussion Progresses
Ways and Means Chairman Kevin Brady sent to the House Rules Committee last night a two-year tax extenders bill tabled as a House amendment to a Senate Amendment to H.R. 34, “Tax Increase Prevention and Real Estate Investment Act of 2015.” This bill is only one option currently on the table with other options being a five-year extension and a broader bill making some extenders permanent.
The House amendment reauthorizes the WOTC Program retroactively until the end of 2016, introduces a new target group, “Long-term unemployment recipient”, which is applicable to new hi...