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WOTC UPDATE: Senate Passes H.R. 5771; Bill Moves to the President

white houseWith the Senate passing H.R. 5771 with a 76-16 vote, Work Opportunity Tax Credits (WOTC), Indian Hiring Credits, Empowerment Zones and a host of other provisions move on to President Obama for his signature and closer to returning for the 2014 tax year.

Once signed, H.R. 5771 would bring WOTC back for a limited period, allowing for a one-year extension of WOTC, expiring December 31, 2014. Although seemingly short, this window brings a significant opportunity by allowing for all 8850 forms already submitted for hires in 2014 to be processed.

What’s Next

  • Check back with ADP Compliance Insights for an update should the president sign the bill.
  • Continue to submit 8850 forms for processing.
  • Ensure all necessary supporting documentation has been submitted.
  • Be prepared to act quickly, as the IRS may extend the current deadline for Form 8850 submissions, as it did in 2013.

Looking Forward

Although current legislation is a short-term solution, it doesn’t necessarily mean a slowdown in activity surrounding WOTC and other provisions. There are already indications lawmakers will address WOTC and other extenders early in 2015. ADP will keep you informed of changes as more information becomes available.


Learn More About ADP SmartCompliance® Tax Credits


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