Work Opportunity Tax Credit Extended Through 2019

On Friday, December 18th, President Obama signed a massive tax package that will extend the Work Opportunity Tax Credit (WOTC) for 5 years. This will extend the WOTC through 2019.  

In addition, a new target group has been added to the Work Opportunity Tax Credit to include the long term unemployed. This is aimed to help the millions of Americans that have been unemployed for 27 weeks or longer.

Employers that hire Veterans, food stamp recipients, long term unemployed, and individuals from certain target groups can earn up to $9,600 for each qualified employee. The tax credits can also be carried forward for up to 20 years.

These tax incentives can reduce your cost of doing business and significantly increase your profit. The tax program is very easy to implement and can save companies thousands of dollars.

We also anticipate the Department of Labor will issue a "relief period" to allow companies to submit WOTC applications if they missed the 28 day deadline due to the hiatus. This means companies can still take advantage of the tax incentive for 2015, but they must submit the required applications.

Companies still have time to capture tax credits for 2015 to reduce their tax liability.

For more information please contact Marcel Abandonato at marcel@mja-associates.com or 951.272.8294.