As a leading provider of Work Opportunity Tax Credit (WOTC) administration services, Cost Management Services (CMS) has been vigilantly watching the status of the Tax Extenders bill being debated in Congress this year.
We are extremely pleased with the news reported on Friday, as President Obama signed a huge tax and spending package into law following congressional votes that avoided a year-end showdown over the budget and ended legislative business until lawmakers return in 2016.
The Senate’s 65-33 vote approved both the $1.1 trillion catch-all spending bill and a $622 billion series of tax breaks. The House earlier passed the two pieces separately by solid majorities — the tax package Thursday and the spending bill Friday morning.
What this means for Work Opportunity Tax Credits
- WOTC has been renewed retroactively to January 1st, 2015.
- WOTC has been extended for 5 years through December 31st, 2019.
- A new target group has been added “Long Term Unemployment Recipient”
CMS’s Brian Kelly said of the renewal: “We are thrilled with the news, first that it is renewed retroactively. We have customers from all across the country anticipating tax credits. Secondly, we are excited to see WOTC be renewed through 2019. This is a bonus to all companies hiring and removes the uncertainty of knowing if the credit would still be available in the future. Additionally, the new category ‘Long Term Unemployment Recipient’ will potentially help thousands of people back into the workforce, meeting the goal of the new category.”
WOTC provides businesses who hire certain qualified individuals a general business tax credit equal to 40% of the first $6,000 of their first years’ salary, meaning the maximum credit a business can claim per employee is $2400. The bill defines “long-term unemployed” as an individual who has exhausted their regular unemployment compensation (the first 26 weeks of unemployment benefits, or slightly over six months) since the economic crisis began in 2007.
About Cost Management Services (CMS)
CMS has helped companies save money on new hires by maximizing tax credits available through the Work Opportunity Tax Credit since 1997. We offer three flexible options with secure online submission, phone screening and paper applications. Our policy is that we don’t get paid, unless you get paid. We do the work for you. There’s never been a better time to start saving. Call today to speak to a tax credit expert 1-800-517-9099 or visit our website to learn more: www.cmswotc.com