WOTC News Update

For the past 17 years CMS has been helping clients take advantage of the Federal Work Opportunity Tax Credit program (“WOTC”) and we want to make sure we keep maximizing the tax credits you receive.

With that in mind, you may be hearing & reading that the WOTC program under the American Recovery Act expired on 12/31/2013, this is correct. However, do not be alarmed, this is actually a common practice dating back to the 1980’s under the Regan Administration.

Our elected officials, congress & President will debate and grandstand about our fiscal budget most likely for several months, if not longer. At the end of this process they will pass new legislation and make the majority of the programs retroactive to their expiration date like they did for 2012.

The key for us is to continue working and processing the Federal Tax Credits on your behalf, the key reason is past legalization required we comply with the “28 Day Rule”.  The 28 Day Rule means we need to submit the appropriate forms for the WOTC tax credits within 28 days of the new employees start date.  If we stop processing you lose out, so let’s continue on our course and let our legislators do what they do best.

Total amount of WOTC Federal Tax Credits companies received:

2012 – 892,314 tax credits  Valued @ $1,606,165,200
2011 – 1,160,523 tax credits valued @ $2,088,941,400
2010 – 914,491 tax credits Valued @ 1,646,083,800

Yes, these numbers are a “B” Billion.

Based on average tax credit valued of $ 1,800.00 – Source: Table prepared by the Congressional Research Service using data from the Department of Labor. http://www.cmswotc.com/wotc-by-the-numbers/

Our view is to not let dollars sit on the table, continue to process as usual.  Thanks for allowing CMS to continue to save you money.  Happy New Year!!

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CMS has helped companies save money on new hires by maximizing tax credits available through the Work Opportunity Tax Credit since 1997. There’s never been a better time to start saving. Call today to speak to a tax credit expert 1-800-517-9099.