The IRS has issued Notice 2016-40 extending the deadline for submitting Work Opportunity Tax Credit (WOTC) applications for qualified employees hired January 1, 2015 through August 31, 2016. The deadline is now September 28, 2016. IRS Notice 2016-12 had previously permitted retroactive vouchering through June 29, 2016. WOTC applications are typically due within 28 days of an employee’s start date. In addition, the Department of Labor (DOL) released Training and Employment Guidance Letter (TEGL) No. 25-15. The TEGL provides guidance on claiming WOTC for qualified long-term unemployed (LTU) employees. The DOL also published a new Form 9061 that includes the LTU category. LTU employees must have been unemployed 27 consecutive weeks and received federal or state unemployment compensation prior to being hired. The LTU category is available for qualified employees hired on or after January 1, 2016. All other categories are available for qualified employees hired on or after January 1, 2015. WOTC is a valuable hiring incentive and can be as much as $9,600 per employee. Please call or email us if you have any questions or would like to schedule a free consultation.
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