The Work Opportunity Tax Credit (WOTC) is currently scheduled to expire on 12/31/2020. CMS is keeping a keen eye out for any news on renewal for WOTC. As of 12/3 renewal is still pending. We will alert you as soon as there is an update.
Legislative Outlook
One of the aspects in favor of the Work Opportunity Tax Credit is that it has always had bipartisan support to aid in its renewal. There are currently 28 Bills in the House of Representatives, and six in the Senate that reference WOTC. These include:
- The Work Opportunity Tax Credit and Jobs Act from Sen. Rob Portman [R-OH], which aims to make WOTC permanent.
- The Hire Student Veterans Act Sponsored by Sen. Jacky Rosen [D-NV].
- Jobs and Childcare for Military Families Act of 2019 Sponsored by Sen. Tim Kaine [D-VA]
- Potential new category for COVID-19 unemployment or furloughed employees.
- Other potential new categories:
- Military Spouse Employment (part of Joe Biden’s campaign proposals)
- Foster Youth
- Student Veterans
What a WOTC Expiration Means for Our Customers
- We encourage all customers using the Work Opportunity Tax Credit, whether using our online form, the call center, or paper, to continue to screen and submit new hires as normal.
- The 28-Day rule is still in place, so even though the WOTC may expire at he end of this year, State Workforce Agencies still require WOTC applications to be submitted to them within 28 days of the hire/start date. There is no wiggle room on this guideline.
- It is normal for WOTC to expire. It has happened several times. If it is allowed to expire, and gets renewed in 2021, it is very likely there will be a retroactive renewal date in order for employers to capture credits submitted while WOTC was expired. This is why we strongly encourage you not to take a break on submitting your applications. You may miss out on valuable tax credits if you do not submit the applications within 28 days.
- CMS will continue to screen and process credits as normal.
About Our WOTC Screening Services
- Why you should use CMS’s WOTC Tax Screening Service rather than doing it yourself.
- Get an idea of how much you could be saving by utilizing the Work Opportunity Tax Credit for your company, try our WOTC Calculator.
- Are you a CPA or tax service provider? Find out how you can become a strategic Business Partner.
Contact CMS Today to Start Saving!
In over 20 years of providing valuable WOTC Screening and Administration services we’ve saved millions for our customers.
Contact CMS today to start taking advantage. Call 800-517-9099, or click here to use our contact form to ask any questions.