"We have been using CMS' tax credit
program for over five years now, and the results have been
excellent, saving us over $100,000 over all our corporations.
I would strongly recommend using Cost Management Services' Tax
Credit Program."
- Rich McCarthy, Great American
Work Opportunity Tax Credits In
The News
Monday, November 5, 2012
Work Opportunity Tax Credits In The News
Keep up-to-date with the latest news on Work Opportunity Tax Credits
(WOTC) with our news blog. CMS monitors all the legislative news and updates in the media to
keep you informed. Here are some of the latest WOTC news updates from
around the web over this past month:
Incentivizing poor and low-income persons to work and save more Means-tested anti-poverty programs determine eligibility based on income and assets. If benefits to able-bodied low income and poor persons are cut in larger proportions of their increasing earnings and assets, it provides a disincentive to earn and save more. Benefit cuts are like a tax on work earnings.
18th Congressional District: Schock vs. Waterworth PEORIA -- A 12-year fixture on Peoria's political scene is running for his third term representing the 18th Congressional District, while a three-time candidate for the post is trying to unseat him.
Getting A Job Is Tough After Getting Out Of Jail (Video) Twin Falls, Idaho (KMVT-TV) A new study released by CareerBuilder shows that half of the roughly 2,300 businesses surveyed have hired people with a criminal record. The survey shows that the first step is for potential employees to be honest about their past. Here in Idaho, the employers can qualify for a Work Opportunity Tax Credit if they hire someone within a year after they've been released from prison.
AT THE END OF THE DAY: Veterans' Day – Time To Remember, Time To Act Two weeks from now, our attention will be focused on those praiseworthy veterans who have served us so proudly throughout the years. Many of them served decades ago while others continue to do so today. Some have had the good fortune to return home safely and pick up where they left off. Sadly, there were many others who paid the ultimate sacrifice and left us with only fond memories of the contributions they made during their short lives.
CMS helps companies of all sizes save money by taking advantage of the
Work Opportunity Tax Credit. Call Brian Kelly at 1-800-517-9099 today to
see if it makes sense for you.
Keep up-to-date with the latest news on Work Opportunity Tax Credits
(WOTC) with our blog. We monitor all the legislative news and updates to
keep you informed. Here are some of the latest WOTC news updates from
around the web this month:
The Family and Business Tax Cut Certainty Act of 2012 The Senate Finance Committee has approved “The Family and Business Tax Cut Certainty Act of 2012.” The committee approved the package of more than $205 billion in tax cut extensions for families and businesses by a bipartisan vote of 19-5.
Baucus/Hatch Bill Extends Work Opportunity Tax Credit On Thursday, the Senate Finance Committee completed markup of the Baucus/Hatch tax extenders bill by approving the bill on a vote of 19-5. The bill contains a two-year retroactive extension of the work opportunity tax credit (WOTC) in its present form, through December 31, 2013.
Quinn signs bill to extend enterprise zones for 25 years Gov. Pat Quinn on Tuesday signed into law a bill that extends the life span of special taxing districts by 25 years, encourages communities to compete for such districts and requires corporate reporting to help determine whether the districts are draining away tax revenue that otherwise would flow to state coffers.
Illinois Leaders Applaud Enterprise Zone Extension Business leaders in the Illinois Valley area hailed the passage of a bill that extends the life of enterprise zones by an additional 25 years. Tuesday, Gov. Pat Quinn signed a new law extending the Illinois Enterprise Zone program. Public Act 97-905 should create greater long-term stability for businesses and attract more investment in Illinois by providing a 25-year extension of the program.
WOTC Hiring Veterans Are you planning on hiring veterans in 2012? Learn about a new tax law change that affects employers who hire veterans in 2011 and 2012 with this IRS video.
Employer Network Promotes Jobs for Wounded Veterans A national network of more than 100 U.S. employers is on a mission to find, hire and accommodate injured military veterans in the workplace. The Network of Champions, which grew out of a recruiting program for wounded former service members at Northrup Grumman, has spread largely by word of mouth. And it’s still growing—as is the need.
Social Media: The GPS for Finding Vets to Fill Jobs Social media can be a valuable tool for organizations looking to recruit military veterans who are transitioning to the civilian world, according to Lisa Rosser, a military recruiting expert.
CMS helps companies of all sizes save money by taking advantage of the
Work Opportunity Tax Credit. Call Brian Kelly at 1-800-517-9099 today to
see if it makes sense for you.
Illinois Leaders Applaud Enterprise Zone Extension
Business leaders in the Illinois Valley area hailed the passage of a bill that extends the life of enterprise zones by an additional 25 years.
Tuesday, Gov. Pat Quinn signed a new law extending the Illinois Enterprise Zone program. Public Act 97-905 should create greater long-term stability for businesses and attract more investment in Illinois by providing a 25-year extension of the program.
“We want our businesses to invest, grow and put more Illinois residents to work,” Quinn said in a press release issued Tuesday. “This new law provides employers with the long-term certainty they need to grow, and strengthens oversight standards to ensure accountability from businesses that participate in the program.”
Marci Duro, executive director of the Illinois Valley Area Chamber of Commerce and Economic Development, welcomed the news of the bill’s signing.
“It’s not perfect,” Duro allowed. “There are a lot of other things we need to fix but it’s a positive.”
Besides the 25-year extension, the new law makes three significant changes to the state program:
A new application process: Applicants seeking zone certification must meet three of 10 criteria including unemployment, infrastructure, plant closure/job loss, education, poverty rates, and high commercial and industrial vacancy.
Establishment of an Enterprise Zone Board: Comprised of two agency heads and three gubernatorial appointees, the board will approve or deny zone applications after being certified and scored by regulators.
Increased reporting requirements: Businesses must annually submit detailed reports if they receive tax benefits. Failure to report data shall result in ineligibility to receive incentives.
The extension was filed as Senate Bill 3616 and passed unanimously out of both houses in the Illinois General Assembly.
The Family and Business Tax Cut Certainty Act of 2012
The Senate Finance Committee has approved “The Family and Business Tax Cut Certainty Act of 2012.” The committee approved the package of more than $205 billion in tax cut extensions for families and businesses by a bipartisan vote of 19-5.
Work opportunity tax credit.
This bill extends for two years, through 2013, the provision that allows businesses to claim a work opportunity tax credit equal to 40 percent of the first $6,000 of wages paid to new hires of one of eight targeted groups. These groups include members of families receiving benefits under the Temporary Assistance to Needy Families (TANF) program, qualified ex-felons, designated community residents, vocational rehabilitation referrals, qualified summer youth employees, qualified food and nutrition recipients, qualified SSI recipients, and long-term family assistance recipients. Based on preliminary estimates, a two-year extension of this proposal is estimated to cost $1.8 billion over ten years.
Returning Heroes and Wounded Warriors Work Opportunity Tax Credits.
Currently businesses are allowed to claim a work opportunity tax credit (WOTC) for hiring qualified veterans in the following targeted groups and up to the following credit amounts:
Veterans in a family receiving supplemental nutrition assistance: $2,400
Short-term unemployed veterans: $2,400
Service-related disabled veterans discharged from active duty within a year: $4,800
A credit against Social Security taxes is also available to tax-exempt employers. Transfers are made from general revenues to make the Social Security trust fund whole. The provision expires on December 31, 2012. The proposal would extend these credits for an additional year, though 2013. Based on preliminary estimates, a one-year extension of this proposal is estimated to cost $125 million over ten years.
Max Baucus, (D-Mont), Chairman of the committee said that "Businesses need certainty so they can plan for the future. They need to know how transactions will be taxed. They need to know what income will be taxed. Without this certainty, they are less able to know how much money they have to hire new workers or invest in new technology or machinery, the engines that help our economy grow.
The state of California has approved a new enterprise zone that consists of a partnership between the county and city of Los Angeles and the city of Huntington Park that will bring a number of benefits to the communities of Florence-Firestone, the eastern section of Watts, Willowbrook, Wilmington, Walnut Park, Rancho Dominguez, West Rancho Dominquez, West Carson, San Pedro, Harbor City, and Harbor Gateway.
The benefits are available beginning May 1 and continue in force for the next 15 years.
Called Harbor Gateway, it is one of 42 enterprise zones scattered around the state, and officials have been seeking the designation since 2009.
The idea behind the designation is to attract businesses that will bring jobs to these communities, which typically have higher unemployment, lower incomes and continue to lag behind the county and the nation in recovering from the recent recession.
CMS helps companies of all sizes save money by taking advantage of the
Work Opportunity Tax Credit. Call Brian Kelly at 1-800-517-9099 today to
see if it makes sense for you.
An 18-39 year-old who is a resident of one of the federally designated Renewal Communities (RC), Empowerment Zones (EZ), Enterprise Communities (EC) or Rural Renewal Counties (RRC). (There are three designated areas in PA: parts of Philadelphia and all of Venango and Warren Counties). For verification information on RC/EZ/EC locations, visit the HUD Web site at: http://egis.hud.gov/egis/cpd/rcezec/ezec_open.htm.
Maximum Amount of Credit
40% of first-year Qualifying Wages for those new hires employed at least 400 hours; 25% of first-year Qualifying Wages for those new hires employed between 120 and 399 hours.
CMS - Sage Abra HRMS is a Sage Software Select certified Business Partner, providing Sage Abra HRMS software solutions to the North East. CMS has been providing Sage Abra HRMS (Human Resource Management Systems), Recruiting, Payroll, Benefits Enrollment, Training, Time and Attendance, Employee Self Service, and Work Opportunity Tax Credits solutions since 1997. Call CMS Today For a Free Assessment of Your HR & Payroll Software Needs at 1-800-517-9099.
