Work Opportunity Tax Credit’s 5 Year Extension
Return to MCM’s WOTC Newsletter (Online)
The PATH Act is Cause for Celebration!
The “WOTC Year 2016” has begun with the IRS issuance of 2016’s form 8850. This comes on the heals of two important events
- On 12/18 President Obama signed the Omnibus Spending Bill H.R. 2029 and the PATH Act (Protecting Americans from Tax Hikes Act of 2015) into law.
- The IRS announcement of Retroactive Forgiveness for 2015 WOTC applications; meaning any WOTC paperwork sent to McKenzie Chase will be accepted as on-time if received by May 31st.
5 more years
The new legislation provides an unprecedented five-year extension to the Work Opportunity Tax Credit (WOTC) program through 2019, which reauthorizes the WOTC program retroactive back to January 1st, 2015 through the end of December in 2019.
New Way to Qualify
In addition, the PATH Act added a new type of WOTC qualification called the Long-term Unemployed. To qualify the employee needs to have been our of work for over 6 months (27 weeks or more) and have received state unemployment benefits at any point during that time of not working.
For your information; the WOTC portion of the Path Act is found immediately below:
For your curiosity and focused reading (You’ll find WOTC update on page 38.); here is the complete Path Act: