Extended Dates for the Work Opportunity Tax Credit

Congress extended the application of the federal Work Opportunity Tax Credit (the “WOTC”) on December 15, 2015.  The revised extension dates are for employees who began working after December 31, 2014, and before January 1, 2020.

Timing is still crucial in regards to applying for the WOTC.  Since, the extension was not enacted until December 15, 2015, employers only have 28 days after an employee begins work to file the application for pre-screening.

The service has granted transitional relief, which extended the application due date to September 28, 2016 for employees hired in 2015 on or after January 1, 2015 through August 31, 2016.  If employees pass the pre-screening process, employers can receive credits between 25-40% of each employee’s first year wages, up to $9,600.

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The WOTC is a great credit for businesses to lower their tax liability and for individuals who consistently face significant barriers to employment.