WOTC in its best shape in history
September 15, 2016
By Stacey May, Director of Tax Credits
Businesses who take advantage of the Work Opportunity Tax Credit (WOTC) have much to celebrate lately. The PATH Act of 2015 authorized WOTC through 2019 as well as added a new target group for the Long-Term Unemployed, extending WOTC’s benefits to millions more potential applicants in search of a job.
This kind of certainty provides businesses with a secure environment to reliably claim WOTC for new hires with increased efficiency. After state workforce agencies (SWAs) clear their backlogs from the program being on hiatus, and increasingly implement and improve electronic filing systems, turnaround times for application determinations will be faster than ever.
With the vast majority of states transitioning to electronic filing in the last few years, the HKP tax credit department has noticed application turnaround times reduced from months or years, to weeks and even days. We anticipate that by mid-2017, many SWAs will be operating at efficiency levels never seen before. Businesses amending tax returns because of credit certification delays will increasingly become a thing of the past. With HKP’s web-based electronic application system, the entire process is paperless in many instances.
HKP is in close contact with WOTC administrators throughout the country to stay on top of the latest developments and improve service to our clients while ensuring they take advantage of these valuable tax credits in an expeditious, efficient and environmentally friendly way. Nearly any business of any size that frequently hires new employees may save thousands in taxes by simply asking new employees to answer a few questions. If your business hasn’t looked into how WOTC can benefit your bottom line, now is the time to do so.