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Tax Reform and the Work Opportunity Tax Credit (WOTC): What’s Happening Now?

Tax Reform and the Work Opportunity Tax Credit (WOTC): What’s Happening Now?

On November 2, 2017, House Ways and Means Chairman Kevin Brady and Speaker of the House Paul Ryan introduced tax reform legislation, H.R. Bill 1, the Tax Cut and Jobs Act. Within this draft bill, numerous programs are listed for repeal, including the Work Opportunity Tax Credit (WOTC) program (in section 3404). While no one knows the future, one thing is certain: the story is far from over. Here is an overview of the WOTC program and what you can expect next. What is WOTC? WOTC is available to eligible employers who hire and retain certain veterans and people from other target groups who have historically been viewed as facing significant barriers to employment. Businesses can claim tax credits, up to a maximum of $9,600 per eligible employee, depending on the target group eligibility of the person hired and the number of hours worked at the new employer. The WOTC program began on October 1, 1996 and has endured the test of time through several expirations and renewals by...

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ADP Legislative Update: New House Bill Could Make WOTC Permanent

ADP Legislative Update: New House Bill Could Make WOTC Permanent

On August 11, 2017, House of Representatives (H.R.) Bill 3652 was introduced and, if passed, would amend the Internal Revenue Code to make the Work Opportunity Tax Credit (WOTC) permanent for qualified new hires who begin work after December 31, 2019. What you need to know: The Bill has officially moved to the House Ways & Means Committee for consideration. With processes to reform the tax code scheduled to begin in September, the Ways & Means Committee may be delayed in considering H.R. Bill 3652. The Congressional Joint Committee on Taxation (JCT) will need to score this legislation and estimate its cost over a 10 year period—it’s unlikely we’d see a vote without this information. Other ways to stay informed: Follow this bill at: https://www.congress.gov/bill/115th-congress/house-bill/3652 Read more about WOTCs here: Cost Reduction Opportunities Using Tax Credits: The Financial Advantage Learn more about opportunities for tax credits savings at: Maximize Your Employment Tax Credits and WOTC Share this:Click to email (Opens in new window)Click to share on Twitter (Opens in...

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