HR Compliance

Billions of Dollars Up for Grabs in Federal Tax Credits

By

Rich Stupansky

| Apr 18, 2016

Good news! Tax Day was extended to April 18 this year.

But that’s not all there is to smile about. Billions of dollars are available in federal tax credits for businesses like yours, and you’re about to find out how easy it can be to take advantage of them. Most businesses are not even aware of one of the biggest tax incentive programs out there: the Work Opportunity Tax Credit (WOTC).

Here’s a brief introduction:

  • As defined by the U.S. Department of Labor, WOTC is “a federal tax credit available to employers for hiring individuals from certain target groups who have consistently faced significant barriers to employment.”
  • Although signed into law in 1996, it’s been around in one form or another since the 1983.
  • It’s been reauthorized 19 times since its inception.
  • December 18, 2015 marked the first time a five-year reauthorization was passed and, as always, was made retroactive.

This latest reauthorization through 2019 is important for several reasons, one of which is transitional relief. Transitional relief allows employers to recover some tax credits from 2015 without the need to sign the documents on or before the job offer was made and to meet the normal 28-day timeline. And knowing WOTC will be there more long-term lets you plan for company growth in the coming years.

Best of all, claiming tax credits is easier than you think, because Paycom’s Tax Credits solution does 95 percent of the work for you, free of risk. If no credits are located for which your company is eligible, you pay nothing! You can find out more by watching our free, on-demand webinar: “What’s New with Work Opportunity Tax Credits?”

Among previous webinar attendees:

  • 70 percent were not taking advantage of available WOTC tax credits.
  • 75 percent were not screening applicants for eligibility during the hiring process.
  • Nearly 80 percent now plan on taking advantage of available tax credits.

Hopefully that adds a little cheer to your Tax Day.

On-demand webinar: “What’s New with Work Opportunity Tax Credits?”

Calculator: Tax Credits Calculator

About the Author

Rich Stupansky

Hailing from Cleveland, Ohio, Rich Stupansky joined Paycom in 2010 and serves as the company’s director of tax credits. With more than a decade of experience with federal tax credits and maximizing the tax credit potential for companies of all sizes, he was instrumental in developing and creating Paycom’s tax credits program.

See more posts by Rich Stupansky