CMS WOTC Newsletter May 2020
In this issue:
- EEOC Issues Formal Opinion on the Work Opportunity Tax Credit
- WOTC 28-Day Filing Deadline Extended by the IRS
- Am I eligible for both the Employee Retention Tax Credit AND the Work Opportunity Tax Credit?
- Switch To Paperless WOTC Screening Today
- Understanding WOTC’s Target Groups: Ex Felon
- Work Opportunity Tax Credit Statistics for Pennsylvania
- WOTC Questions: Do you include all regular, overtime, and holiday hours when determining the hours worked?
EEOC Issues Formal Opinion on the Work Opportunity Tax Credit
The U.S. Equal Employment Opportunity Commission has released its first official opinion letter dated April 29, 2020, on the Federal Work Opportunity Tax Credit Form 8850. The letter confirms that employers can legally utilize the Work Opportunity Tax Credit without violating federal anti-discrimination laws.
WOTC 28-Day Filing Deadline Extended by the IRS
To help taxpayers, the Department of Treasury and the Internal Revenue Service announced on April 9th that Notice 2020-23 (PDF) extends additional key tax deadlines for individuals and businesses.
Am I eligible for both the Employee Retention Tax Credit AND the Work Opportunity Tax Credit?
The Employee Retention Credit is a refundable tax credit against certain employment taxes equal to 50 percent of the qualified wages an eligible employer pays to employees after March 12, 2020, and before January 1, 2021. Eligible employers can get immediate access to the credit by reducing employment tax deposits they are otherwise required to make.
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: Ex-Felon
New hires who fall under one or more of WOTC’s Target Groups may make you eligible for a WOTC Tax Credit. Target Group #3 is the Ex-Felon. An ex-felon is an individual who has been convicted of a felony and has a hiring date which is not more than one year after the last date on which he was so convicted or released from prison.
Work Opportunity Tax Credit Statistics for Pennsylvania
In 2019 the state of Pennsylvania issued 93,042 Work Opportunity Tax Credit certifications. Nationwide Pennsylvania issued 4.5% of WOTC Tax Credits in 2019. SNAP was Pennsylvania’s most issued tax credit, with 57,755 credits issued for that catgegory.
WOTC Questions: Do you include all regular, overtime, and holiday hours when determining the hours worked?
CMS Says: Yes you do. Include all hours that are compensated when calculating hours worked, that includes overtime hours and holiday pay.
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Related: WOTC Newsletter Archive