The US Department of Labor, Employment and Training Administration (ETA) has issued guidance to State Workforce Agencies regarding the processing of Work Opportunity Tax Credit (WOTC) applications now that the program is retroactively extended to January 1, 2015.

 

WOTC has been retroactively extended from 2014 to 2019

As we previously described, On December 18, 2015, President Obama signed into law the Protecting Americans from Tax Hikes Act of 2015 (PATH) that extends the Work Opportunity Tax Credit (WOTC) retroactively for hires from December 31, 2014 to December 31, 2019.

 

ETA instructs State Agencies to process applications during authorization gap

State Agencies are being instructed to process all timely filed certification requests for all currently reauthorized target groups using the current forms and issue employers or their representatives the respective certifications or denials.

 

The ETA plans to modify ETA Form 9061/9062 and IRS Form 8850 for statutory requirements for the new Long-term Unemployment Recipient target group.  The ETA has advised State Agencies to encourage employers to postpone certification requests for the new target group until the revised forms are available.

 

Forms submitted for the new target group should indicate “Long-term unemployment recipient” in the top right margin, under the expiration date.

 

State Agencies may accept applications for the new target group using the current forms ETA forms 9061/9062, yet must postpone processing those certification requests until the ETA issues additional guidance.

 

A handful of states have provided updated guidance on the WOTC extension.  Please contact your State Workforce Agency to confirm the handling required for these forms.

 

Where Employers can Find More Details

To learn more about the recent WOTC Reauthorization go to: https://www.doleta.gov/business/incentives/opptax/pdf/PATH_Act_2015-WOTC_Interim_Instructions.pdf

 

If you have any questions regarding WOTC itself, the agency has established a direct email address: Ask.WOTC@dol.gov.

 

 

Thank you for choosing Paylocity as your Payroll Tax partner. Should you have any questions please contact your Paylocity Account Manager.

 

This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.