Follow Chad Linkedin
Email Chad Email
Financial
Jan 25, 2017

Tax Credit For Hiring Targeted Employees

Sponsored Content provided by Chad Wouters - Partner, Earney & Company, LLP

At the end of 2015, the U.S. House and Senate passed the Protecting Americans from Tax Hikes Act of 2015 (PATH). The PATH retroactively reauthorizes the Work Opportunity Tax Credit (WOTC) program for a five-year period, from Dec. 31, 2014 to Dec. 31, 2019.

WOTC is a federal tax credit available to employers for hiring individuals from certain target groups, who have consistently faced significant barriers to employment. WOTC joins other workforce programs that incentivize workplace diversity and facilitate access to good jobs for American workers.

Target groups for WOTC include:

  • Unemployed veterans
  • Temporary Assistance for Needy Families recipients
  • Food stamp recipients
  • Designated Community residents
  • Vocational Rehabilitation-referred individuals
  • Ex-felons
  • Supplemental Security Income recipients
  • Summer youth employees
  • Qualified Long-Term Unemployment tecipients
For employers to qualify for the credit they must:
  • File Form 8850 - Pre-Screening Notice and Certification Request for the Work Opportunity Credit - which is usually due no later than 28 days after an employee begins work.
  • Taxable employers must claim the tax credit, after the required certification is secured, as a general business credit on Form 3800 against their income tax by filing:
    1. Form 5884
    2. Form 3800
    3. You business’s related income tax returns
  • Tax-exempt employers must claim the credit against the employer social security tax by separately filing Form 5884-C after the required certification (Form 8850) is secured and after filing the related employment tax return for the period that the credit is claimed.
The credit is limited to the amount of the business income tax liability or social security tax owed. A taxable business may apply the credit against its business income tax liability, and the normal carry-back and carry-forward rules apply. For qualified tax-exempt organizations, the credit is limited to the amount of employer social security tax owed on wages paid to all employees for the period the credit is claimed.

If you are uncertain if you are an employer who qualifies for WOTC, feel free to contact one of our tax professionals at Earney & Company, L.L.P. at (910) 256-9995.

Chad Wouters, CPA joined Earney & Company in December 2006 and became the tax partner in November 2013.  With an emphasis on strategy and planning, Chad works with his clients all year to ensure the most efficient tax strategies are put into place.  Earney & Company, L.L.P.  is a CPA firm that handles tax compliance, consulting and planning as well as audit and other assurance services.  For more information please visit www.earneynet.com or call (910) 256-9995.  Chad can also be reached at [email protected].
 


 

Ecolarge
Ico insights

INSIGHTS

SPONSORS' CONTENT
Geofflosee300x300 10221511305

Got Flood Insurance? Get That Proof of Loss Form in Quickly!

Geoffrey Losee - Rountree Losee LLP
Russell 102218124439

Can I Protect the Appearance of My Product or Packaging?

Russell Nugent - The Humphries Law Firm
Mike stonestreet 300x300

Leasing in a Community Association

Mike Stonestreet - CAMS (Community Association Management Services)

Trending News

Family-owned Artisan Market Planned For Third Street Property

Christina Haley O'Neal - Feb 15, 2019

Changing Tides

Laura Moore - Feb 15, 2019

Brunswick County Has Second-strongest January Home Sales

Johanna Cano - Feb 15, 2019

Food Hall Trend Coming To ILM

Kyle Hanlin - Feb 15, 2019

Pushing Investment Crowdfunding

Johanna Cano - Feb 15, 2019

In The Current Issue

Navy Week To Coincide With Azalea Festival

The U.S. Navy is coming to the Port City this spring, coinciding with the N.C. Azalea Festival. Wilmington is among the 14 selected sites –...


Food Hall Trend Coming To ILM

Food halls have been popping up throughout the United States, often in downtown cores. Some estimates predict that there could be more than...


Pushing Investment Crowdfunding

After almost two years since the NC PACES Act was enacted, three companies have completed crowdfunding fillings with the state, demonstratin...

Book On Business

The 2019 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!


Galleries

Videos

Health Care Heroes 2018
2018 WilmingtonBiz Expo - Keynote Lunch with Eric Dinenberg, Rouse Properties