The clock is ticking on valuable 2015 tax credits. There is still time to take advantage of tax credits for people hired during 2015 and the first five months of 2016.
The IRS’ temporary suspension of the 28 day rule for WOTC applications will soon expire. Applications submitted for processing to the state’s workforce development agency – for people hired between January 1, 2015 and May 31, 2016 – will still be valid if the employer submits the completed forms by June 29, 2016. For people hired on or after June 1, 2016, applications must be postmarked within 28 calendar days after the employee’s start date for it to be considered timely filed.
It is important to create and implement a plan for capturing old credits and to establish an ongoing WOTC program to ensure future credits are earned.
LBMC’s WOTC Service automates and simplifies the screening, application, certification and tracking of your WOTC program and integrates into your application and onboarding processes.
Reference: IRS Notice 2016-22
Don't miss out. Take advantage of the tax saving opportunities in the PATH Act. Through May 31, 2016, businesses can take advantage of the whole 2015 year’s hiring activities even though they are outside of the 28-day window. For more information, read "Impact of the PATH Act and other Business Legislation."