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Act Soon to Take Advantage of WOTC on 2014 Eligible Hires

2015-03-20 11:00:00


Act Soon to Take Advantage of WOTC on 2014 Eligible Hires

Webinar Description:

The IRS recently announced that employers who hired employees eligible for the Work Opportunity Tax Credit (WOTC) in 2014 have until April 30, 2015 to file the WOTC screening documentation (IRS Form 8850) with the appropriate state agency. If you hired WOTC eligible employees in 2014, ADP can help you file the required paperwork within this transition relief period to help you capture the 2014 WOTC credits for which you may be eligible.

With more than 30 years of experience, ADP has the specialized knowledge, experience and proven processes to help you identify and capture federal and state tax credits for which your company may be eligible.


Paul Vanhuysen headshotPaul VanHuysen
Paul VanHuysen is the director of tax at ADP Tax Credit Services. With more than 13 years in the tax credits and incentives industry, Paul specializes in applying technology to capture and calculate federal and state tax credit opportunities. Paul has designed screening, tracking and calculation processes for various federal tax credits and state-based incentive programs, including the Work Opportunity Tax Credit (WOTC), Federal Empowerment Zone and Renewal Community Credits, Gulf Opportunity Zone Credits, HIRE Act of 2010, California Enterprise Zone Tax Credit and Indian Employment Credit. Throughout his career, Paul has led tax consulting projects for more than 50 of the Fortune 500 companies. Paul holds a bachelor’s degree from Northwestern University and an MBA in economic strategy from Southern Methodist University.


WOTC Transaction Relief

March 20, 2015

5:00 PM ET

Paul Van Heusen:               Hello, and welcome to a brief discussion today on the WOTC Transition Relief for 2014 hires.  There’s been a lot of activity in and around the Work Opportunity Tax Credit Program in late 2014 and early 2015 that has brought applicability to a lot of taxpayers.  So, we at ADP and myself wanted to bring to you and talk through some of these legislative items that have come through in the past few months, and just talk briefly to you about that today.  I will be hosting this, I am Paul Van Heusen (ph), I’m part of the Tax Credits team at ADP.  I’ve been in and around the WOTC program for the last 15 years, and with that, let’s just jump right in and go through the presentation.

So early, or late, in 2014, at 12/19 or December 19 of 2014, the Tax Increase Prevention Act of 2014 was signed into law by President Obama.  The Act extended the Work Opportunity Tax Credit, or WOTC, program for all of 2014 or January 1 of 2014, through 12/31 of 2014 where the program was in a legislative hiatus from 12/31 of 2013.

As part of the larger tax extenders bill, the Act also extended other popular employment credits within the same legislation, of the Indian Employment Credit and the Federal Empowerment Zone Credit Tax Credit.  In addition, there were many other tax programs extended on both the personal and on corporate returns as well.

But we’re going to focus today primarily on the transition relief associated with the Work Opportunity Tax Credit program.  On February 19, about a month ago, 2015, the IRS issued a notice 2015-13.  The notice provides for transition relief to employers seeking tax credits or the WOTC tax credits for their eligible employees hired during calendar year 2014.  IT’s important to note that this transition relief does only pertain to individuals that were hired in 2014.

The transition relief is really a temporary relaxation of the 28-day deadline that’s associated with the filing of IRS form 8850, with the various state departments of labor, on those 2014 eligible hires.  This is a similar transition relief to those that were also granted in 2013 by the IRS related to the extension by the American Taxpayer Relief Act of 2012 and prior to that, also the Vow to Hire Heroes Act of 2011.

Now, if we dive in a little bit deeper into defining what that transition relief period actually is, transition relief is, as I stated earlier, a relaxation of the 28-day deadline on the IRS-8850 form for a distinct population of employees, and we’re going to dive into what that distinct population is.

The impacted population is qualified employees that meet the parameters of the Work Opportunity Tax Credit program, and those employees must be hired, as stated earlier, between 1/1/2014 and 12/31/2014.  The transition relief period is in effect from the date of the IRS notice 2015-13, which was February 19, 2015, through 4/30 of 2015.  So, this means that that deadline for this transition relief period ends as of 4/30/2015.

The transition relief is temporary, and it’s important to note that this only again, pertains to eligible employees hired in 2014.  Now, that’s an important caveat, because this transition relief is — it’s temporary in basis, meaning it’s going to end as of 4/30/15, and it only pertains to those individuals who are hired between — hired during the 2014 period.  So, this is not a go-forward transition relief period and a change to the WOTC legislation.

The opportunity may exist for many employees in 2014 who hired eligible employees or qualifying employees, but may not have submitted the required certification requests in a timely — or submitted that request in a timely manner.  It’s important to note here that ADP has a strategy in place to help employers file this required paperwork during this transition relief period, ending in April.  And we are working currently with many employers to capture these 2014 WOTC credits for which they are eligible.  So, a lot of times this involves working with them to develop a plan to execute, and find these eligible individuals, and get the necessary paperwork filed with the state departments of labor prior to the closing of this transition relief window.

If this is something that you’re interested in, please feel free to reach out to your ADP service representative to discuss the WOTC program and how ADP can help your company capture these credits for which it may be eligible.





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