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On February 17th, 2009 President Obama signed the
"Stimulus Package" which allocated over $770 billion to rebuild our
battered economy.
A small, yet significant, part of the "Stimulus Package" has a created
a big change in the WOTC program.
Veterans and youth who begin work during 2009 or 2010 will be eligible
to earn their employers business tax credits.
This new opportunity is substantial; since these two new groups are
more common than the existing 8 WOTC target groups. Here's how the two
new groups are defined, with their official WOTC names:
UNEMPLOYED VETERAN
- discharged or released from active duty in the
Armed Forces within 5-years of the hiring date, and
- received unemployment compensation for at least 4
weeks during year before the hiring date.
DISCONNECTED YOUTH
- age 16 but not yet age 25 on the hiring date, and
- not regularly attending any high school, college
or technical school within 6-months of the hiring date, and
- not regularly employed during the 6-month period,
and
- is not readily employable due to a lack of basic
skills.
WOTC is a positive and proactive approach to catch the wave of federal
funds of the "Stimulus Package" - intended to flow to businesses like
yours - during these difficult economic times.
The result is savings of after-tax profits during tough times, which is
when it counts the most.
Mckenzie Chase Management makes claiming tax credits compatible with
your business with its easy to follow program. Contact us today for
your free 15 minute Tax Credit Review to see your potential for savings.
Going forward with these new categories:
- All 8850's and MCM Pre-screening Worksheets which
may include these two new target groups will be processed for tax
credits.
- Youth eligible applicants (ages 16 to 25) with
potential qualifications will be processed as 'disconnected youth'.
- Veteran WOTC applications, applying using the old
MCM Pre-screening Worksheet, will all be flagged as 'unemployed
veteran'. The new worksheet includes questions about unemployment
benefits for veterans.
- All 2009 applications, from Jan. 1st, 2009, are
being reviewed. When possible, appeals in 2009 will reference these 2
new target group definitions.
This may take time:
- Certificates reflecting these new target groups
may take several months to process.
- The WOTC does not yet have a defined process for
verifying the criteria for these two target groups.
- For this reason; other target groups, when
present, will be used to process WOTC applicants whenever possible.
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