CMS WOTC Newsletter April 2020

In this issue:

CARES Act Provides Support to Businesses Affected by the Coronavirus
Tax Extenders Under Consideration with Coronavirus Relief
Reducing Turnover by Hiring STARS
Switch To Paperless WOTC Screening Today
Understanding WOTC’s Target Groups: Qualified Veteran
Work Opportunity Tax Credit Statistics for California
WOTC Questions: How long does the employee have to stay employed at the company after they are hired?
#ICYMI

CARES Act Provides Support to Businesses Affected by the Coronavirus

The Coronavirus Aid, Relief, and Economic Security (CARES) Act, H.R. 748 contains a plethora of tax measures as part of a $2 trillion aid package designed to help the economy as it suffers from the effects of the coronavirus pandemic.

Tax Extenders Under Consideration with Coronavirus Relief

Law 360 Tax Authority reports lawmakers have begun to work on a fourth relief package that could pass Congress by May if the economy continues to sputter from the impact of COVID-19. That measure, which could focus on rebuilding the nation’s crumbling infrastructure, may turn out to be a perfect vehicle for dozens of individual and business tax provisions that expire in 2020, several tax lobbyists said.

Reducing Turnover by Hiring STARS

Do you have a list of the top ten reasons STAR employees would want to work for you? Just one of the questions hourly worker hiring and retention expert Mel Kleiman addresses in this extract from a recent webinar that we did with HR.com.

Switch to Paperless WOTC Screening Today

CMS has been providing Work Opportunity Tax Credit screening services for over 20 years. We have helped save employers millions of dollars that can be reinvested back into their businesses. We highly encourage customers to take advantage of the online WOTC screening form that we developed or the call center, both of which provide several benefits to you.

Understanding WOTC’s Target Groups: Qualified Veteran

New hires who fall under one or more of WOTC’s Target Groups may make you eligible for a WOTC Tax Credit. Target Group #2 is the Qualified Veteran. A “qualified veteran” is a veteran who is any of the following:

A member of a family receiving assistance under the Supplemental Nutrition Assistance Program (SNAP) (food stamps) for at least 3 months during the first 15 months of employment.
Unemployed for a period totaling at least 4 weeks (whether or not consecutive) but less than 6 months in the 1-year period ending on the hiring date.
Unemployed for a period totaling at least 6 months (whether or not consecutive) in the 1-year period ending on the hiring date.
A disabled veteran entitled to compensation for a service-connected disability hired not more than one year after being discharged or released from active duty in the U.S. Armed Forces.
A disabled veteran entitled to compensation for a service-connected disability who is unemployed for a period totaling at least six months (whether or not consecutive) in the one-year period ending on the hiring date.

Work Opportunity Tax Credit Statistics for California

In 2018 the state of California issued 158,209 Work Opportunity Tax Credit certifications. Nationwide California issued 7.18% of WOTC Tax Credits in 2018. California issued the most overall tax credits for both the short and long term TANF, SSI Recipient, and Long Term Unemployment categories. California also received the most requests for WOTC tax credits.

WOTC Questions: How long does the employee have to stay employed at the company after they are hired?

In order to be eligible for you to receive a Work Opportunity Tax Credit they would need to be employed a minimum of 120 hours. Even if qualified, and you have received a certification, if they work less than 120 hours overall, you forfeit that credit.