"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, December 10, 2012
WOTC Blog Has Moved
Our WOTC Blog has moved to www.cmswotc.com and this page will no longer be updated.
About CMS
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.
CMS would like to invite you to join our residentHuman Resources and Tax Credit Expert, Brian Kelly, to learn about the Work Opportunity Tax Credits.Brian will review the following, and answer any questions you may have about this extremely valuable tax credit.
What’s new with the Work Opportunity Tax Credit?
What are the facts?
Which employees are eligible?
How much can we save?
What does CMS WOTC do for me?
What does it take to get started?
Learn how you can save with Work Opportunity Tax Credits
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.
The Family and Business Tax Cut Certainty Act of 2012 includes WOTC Extension
The Senate Finance Committee approved the package of more than $205 billion in tax cut
extensions for families and businesses by a bipartisan vote of 19-5 in the “The Family and Business Tax Cut Certainty Act of 2012.
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
food and nutrition recipients (SNAP), 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.
Max Baucus, (D-Mont), Chairman of the committee
said in a statement 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."
Nick Saucier, a former Army sniper who spent time in Afghanistan, has
found that the skills he learned in the military now serve him well as a
machinist. And his employer, Bristol’s Arna Machine, has been able to
take advantage of a federal tax credit for hiring a veteran.
“What we’re trying to do here is make people more aware of the tax
credits that exist,” Blumenthal said. “A lot of manufacturers could be
taking advantage of them but aren’t because they’re simply unaware of
them.”
The size of the tax credit typically ranges from $2,000 to $3,000,
depending on the status of the veteran the company hires, Blumenthal
said. But manufacturers could receive up to $9,000 in special
circumstances, like if the veteran is disabled.
Find out more about federal tax credits available for hiring veterans!
Learn more about WOTC on August 29th with Tax Credit expert Brian Kelly's free lunch & learn WOTC webinars: http://cmswotc.blogspot.com/2012/08/wotc-webinar.html
About CMS
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.
WOTC Webinar: What’s new with the Work Opportunity Tax Credit?
CMS would like to invite you to join our residentHuman Resources and Tax Credit Expert, Brian Kelly, to find out what's new with the Work Opportunity Tax Credits.Brian will review the following, and answer any questions you may have about this extremely valuable tax credit.
What’s new with the Work Opportunity Tax Credit?
What are the facts?
Which employees are eligible?
How much can we save?
What does CMS WOTC do for me?
What does it take to get started?
WOTC for For-Profit Companies
Starting Wednesday, August 29th
at 12:00 EST
WOTC for Non-Profit Companies
Starting Wednesday, August 29th
at 1:30 EST
To sign up for either session please click here, or call CMS at 1-800-517-9099 today.
About CMS
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.
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.
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.
"CMS has experienced the same process over the last 15 years of wondering if the Senate and Congress are going to pass legislation to continue the Federal Tax Credits (WOTC), for Employers to hire from targeted groups, including Veterans. We anticipate the credits getting renewed and going retroactively back to when they expired 12/31/2011.
Since our start as tax credit professionals, CMS professes to our clients to continue to process based on the 28 day window from employees hire date. Thus making sure we capture not only new tax credits but also any potential tax credits that go retroactively back to expiration date i.e. 12/31/2011."
About CMS
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.
Follow us on Twitter, Facebook, LinkedIn and our Blog to keep informed of any WOTC news and legislative updates.
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.
CMS's new Work Opportunity Tax Credit brochure focuses on Veterans.
Save on New Hires in 2012 with the Work Opportunity Tax Credit The “VOW to Hire Heroes Act of 2011, now allows employment tax credits for both “For Profit” and “Non Profit” companies under the federal employment tax credit i.e. the Work Opportunity Tax Credit Program "WOTC".
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:
Illinois Department of Employment Security announces web site improvements The Illinois Department of Employment Security announced Wednesday that the agency has completed a year-long upgrade of its web site to enable more businesses to access tax incentive information. Applications for the Work Opportunity Tax Credit showed Illinois businesses qualified for $67 million in income tax credits after hiring 27,000 individuals from historically disenfranchised groups, including military Veterans, the press release said.
IRS Tax Credit Check - Business Credits Here is today's Tax Credit Check, a reminder to businesses to take advantage of business tax credits. Businesses accommodating people with disabilities may qualify for the following two tax credits.
Capture jobs credit for vets Does your business intend to hire military veterans this year? It may qualify for the Work Opportunity Tax Credit (WOTC). The maximum WOTC is $9,600 for hiring veterans with service-connected disabilities who have been unemployed for more than six months; $5,600 for other veterans who have been unemployed for more than six months; and $2,400 for veterans who have been unemployed from one to six months.
How to tap into the growing labor pool of service members to benefit your business A projected 175,000 service members will be exiting the military in the next year. When they return to civilian life, these young veterans of the Iraq and Afghanistan wars will face an unemployment rate of 23 percent, contributing greatly to the Department of Defense’s annual unemployment compensation payments of more than $900 million. However, at the same time, there are 1.7 million high-wage, high-demand jobs open in the U.S. today that match the skills of service members, representing more than $136 billion in gross wages.
VOW To Hire Heroes Act Benefits Unemployed Veterans and Employers The VOW (Veterans Opportunity to Work) to Hire Heroes Act intends to help veterans between the ages of 35 and 60, especially ones with service-related disabilities, find training and employment.
Seven Opportunities For Retailers On top of the economic uncertainty all companies must contend with, retail stores and restaurants face significant long-term challenges, including the continued rise of e-commerce and the ongoing need for financing. And while there’s no easy fix, these companies can enjoy a higher level of financial security and take advantage of potential opportunistic moves in a soft market by focusing more attention on their cash and capital. To do this properly, they need to truly understand their sales peaks and valleys and carefully project their cash flow on a rolling 12-month basis. The following seven factors can help you make the most of your cash flow potential.
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.
IRS reminds businesses to take advantage of tax credits
The Internal Revenue Service is reminding businesses to take advantage of business tax credits, according to a news release from the IRS.
The Work Opportunity Tax Credit provides eligible employers with a tax credit when they hire new employees from a "targeted group." The credit is up to 40 percent of the first $6,000 of first-year wages of a new employee.
The credit is available to the employer once the employee has worked for at least 120 hours or 90 days.
The VOW to Hire Heroes Act of 2011 provides an expanded work opportunity tax credit to businesses that hire eligible unemployed veterans and for the first time also makes part of the credit available to tax-exempt organizations.
The credit is available for eligible unemployed veterans who begin work on or after November 22, 2011, and before January 1, 2013.
For more information, go to IRS.gov and check out information on the Disabled Access Credit and the Work Opportunity Tax Credit.
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.
Employers Need to Act Soon to Receive Tax Credit for Hiring Vets
WASHINGTON, D.C. — Employers that hired unemployed veterans during
late 2011 and early 2012 had an expanded period to request the required
certification for claiming the expanded Work Opportunity Tax Credit
(WOTC). That expanded period ends on Tuesday, June 19.
The IRS is reminding employers that for eligible veterans hired on or
after Nov. 22, 2011 and before May 22, 2012, they have until June 19 to
file certification forms with state workforce agencies.
Here are some important points to know about the credit and upcoming deadline:
New rules provide for an expanded WOTC to employers that hire eligible unemployed veterans.
The credit can be as high as $9,600 per veteran for for-profit
employers or up to $6,240 per veteran for tax-exempt organizations.
CMS helps companies of all sizes save money by taking advantage of the
Work Opportunity Tax Credit. For more information about how WOTC can help your business, call Brian Kelly at 1-800-517-9099 today to
see if it makes sense for you.
The Florida Department of Economic Opportunity (DEO) has announced a new paperless alternative to the traditional WOTC application process. The traditional process required employers and consultants, like CMS, to mail the original signed copies of the WOTC application forms to the State. Florida's new e-WOTC system allows employers and consultants to access the online system that can expedite the approval process.
The e-WOTC application process will save time by eliminating the need to mail in paper copies of applications and supporting documentation. The DEO's secure online application process may also reduce the amount of time it takes to receive a determination.
About CMS
CMS helps companies of all sizes save money by taking advantage of the
Work Opportunity Tax Credit. For more information about how WOTC can help your business, call Brian Kelly at 1-800-517-9099 today to
see if it makes sense for you.
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.
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:
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.
Rebuild America Act Introduced, seeks to extend the Work Opportunity Tax Credit through 2015
Senator Harkin (D-IA) introduced S. 2252,
the Rebuild America Act of 2012.
A bill to rebuild the American middle class by creating jobs, investing
in our future, building opportunity for working families, and restoring
balance to the tax code.
The bill seeks to improve the
employment and economic security of America’s middle class. Among its
many provisions, the bill proposes to strengthen Social Security through
a balanced approach that advances solvency of the Social Security Trust
Funds while also enhancing the benefit calculation formula and annual
cost-of-living adjustments for all Social Security programs, including
Supplemental Security Income.
The bill also proposes to extend the Work Opportunity Tax Credit (WOTC) program through 2015 and to expand and
increase the WOTC for workers with disabilities. The bill was referred to the Committee on Finance.
Many of our customers have inquired as to the status of the Work Opportunity Tax Credit or WOTC as it is known, as they are aware that it has expired as of December 31st, 2011. To date, the program has not been renewed yet, and customers are wondering if they should continue to send in their paperwork.
Per CMS' Brian Kelly, "Absolutely, please continue to have your new employees complete and send in your WOTC forms. When congress re-approves the bill, it is typically retroactive to the date it expired."
You may continue to receive tax credits for hiring "unemployed veterans." This is the only active category of the Work Opportunity Tax Credit at the moment.
Though we do not know exactly when the WOTC will be reinstated, it is advisable to continue submitting your applications, so that you can take advantage of any approved credits when the bill is renewed.
About CMS
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.
The February 2012 issue of HR Magazine features an article by Eric Krell discussing the merits of hiring ex-offenders. The feature discusses the legal aspects, including all the risks and rewards and how you can help by hiring an ex-offender.
For WOTC purposes an Ex-felon is described as "An individual convicted of a felony and hired within one year after conviction or release from prison, and who is a member of a federally-defined economically disadvantaged family. Lower Living Standard Income Levels per Memo AP 03-10."
If hiring an ex-offender you may be eligible for a tax credit of up to $2,400.00, actual tax credits will vary depending on hours worked.
About CMS
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.
The Internal Revenue Service has provided new guidance and forms that employers can use to claim the newly-expanded tax credit for hiring veterans.
The VOW to Hire Heroes Act of 2011, as enacted on November 21, 2011, expands the Work Opportunity Tax Credit ("WOTC") to businesses hiring eligible unemployed veterans. For the first time the bill also makes the credit available to qualified tax-exempt organizations.
The IRS confirmed that the WOTC can be as high as $9,600 per veteran for for-profit employers, and up to $6,240 for tax-exempt organizations.
The amount of the credit depends on several factors, such as length of the veteran’s unemployment, number of hours worked and amount of first-year wages paid. Employers hiring veterans with service-related disabilities may be eligible for the maximum credit.
Normally, an eligible employer must file the appropriate WOTC forms with the state workforce agency within 28 days after the eligible worker begins work. However, according to the guidance from the IRS, employers have until June 19, 2012, to complete and file the newly-revised forms for veterans hired on or after November 22, 2011, and before May 22, 2012. The 28-day rule will again apply to eligible veterans hired on or after May 22, 2012.
The new IRS guidance also allows for electronic submission of WOTC forms to the state workforce agencies within 28 days of the employee's start date.
The US Department of Labor is expected to issue additional guidance to the state workforce agencies providing further clarification.
About CMS
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.
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.
