The deadline to submit Work Opportunity Tax Credit (WOTC) applications for qualified employees hired January 1, 2015 through August 31, 2016 is September 28, 2016 under IRS Notice 2016-40. WOTC forms must typically be completed on or before offer of employment and filed with the designated local agency (DLA) not later than 28 days after the employee’s start-of-work date. WOTC expired at the end of 2014 and was retroactively renewed and extended to December 31, 2019 under the Protecting Americans from Tax Hikes (PATH) Act of 2015. Employees hired beginning September 1, 2016 must follow the 28-day requirement so WOTC forms for an employee hired today would need to be submitted to the DLA by September 29, 2016. The DLA in California is the Employment Development Department (EDD). WOTC is a federal tax credit that incentivizes employers to hire from target groups and generally ranges from $2,400 to $9,600 per qualified employee. Please do not hesitate to contact us if you would like to pursue this retroactive opportunity or implement a system to capture WOTC for all new hires.
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