The IRS issued Notice 2015-13 on February 19, 2015 allowing taxpayers to certify qualified employees hired in 2014 under the Work Opportunity Tax Credit (WOTC) program. The standard application period for claiming WOTC is 28 days from the employee’s start date so this is a significant retroactive opportunity to reduce federal tax. Taxpayers must submit applications no later than April 15, 2015. The maximum credit per employee is generally $2,400 to $9,600 depending on the employee’s target group. Target groups include:
- Temporary Assistance to Needy Families (TANF) recipient
- Food Stamp recipient
- Social Security recipient
- Qualified veteran
- Designated Community resident
- Summer Youth employee
- Vocational rehabilitation referral
- Qualified ex-felon
Please do not hesitate to contact us if you have any questions or if we can be of assistance.