Posted by admin , on January 21, 2016
The Federal Work Opportunity Tax Credit (WOTC) has been reauthorized for 5 years, retroactive to January 1, 2015 as part of the tax extender legislation (Protecting Americans from Tax Hikes Act of 2015 (PATH Act)) that was passed in December. The credit is available to employers of eligible new hires who begin work before January 1, 2020. Attached are the forms and related information. These forms should be incorporated in the new hire packets and become part of your hiring process.
TARGET GROUP ELIGIBILITY
The credit is available to employers for hiring individuals from the below target groups. Further definition of these target groups is included in the attachment Target Group Eligibility.
- Veterans
- Temporary Assistance for Needy Families (TANF) Recipients
- Food Stamp (SNAP) Recipients
- Residents living in Empowerment Zones or Rural Renewal Counties
- Vocational Rehabilitation Referred Individuals
- Ex-Felons
- Supplemental Security Income Recipients
- Summer Youth Employee
DOWNLOAD: Target Group Eligibility
WOTC APPLICATION STEPS
The employer must complete the following steps to apply for the certification to receive the WOTC.
- Complete IRS Form 8850 by the day the job offer is made.
DOWNLOAD: Instructions to Form 8850 • Form 8850
- Complete ETA Form 9061 or ETA Form 9062 if the employee has identified on the 8850 they are part of a target group.
DOWNLOAD: ETA Form 9061 • ETA Form 9062
- Submit the completed and signed IRS and ETA forms to the DOL. These forms must be submitted within 28 calendar days of the employee’s start date. Fax the forms to 518-485-1359 or mail to the address below.
New York WOTC Unit
New York State Department of Labor
State Office Building Campus
Building 12, WOTC Unit, Room 200
Albany, NY 12240
Contact: Bonnie.Lance@labor.state.ny.us
Phone: 518-457-6823 or 800-447-3992 (Toll Free)
Once the NY Department of Labor approves the request you will receive a certificate of final determination from the DOL. Please forward us a copy of this certificate to attach to the tax return in order to claim the credit.
We are awaiting guidance if there will be a transitional relief period for certification requests for new hires that were employed between January 1, 2015 and December 31, 2015. If you have any employees that meet the criteria for which the above forms were not filed with the DOL, please submit the forms as soon as possible.
FORMS
Download the following PDFs:
Instructions to Form 8850
Form 8850
ETA Form 9061
ETA Form 9062
Target Group Eligibility
FOR MORE INFORMATION
Cory has over 13 years of experience providing tax services to commercial businesses and individuals. He specializes in assisting clients navigate the myriad of business development incentives offered by various Federal, State and Local agencies to encourage regional investment, spur job creation and foster economic growth. Cory has experience in all areas of U.S. Federal and NY State Taxation. He has been with Lumsden McCormick since 2001, was nominated to the partnership of the Firm in June 2014 and became partner January 1, 2015.
