Legislative Update

WOTC has been renewed retroactively from January 1, 2015 through December 31, 2019. This is an unprecedented five year renewal.

A new category, “long term unemployed” was added with the renewal. The legislation requires 27 weeks of unemployment and receipt of unemployment benefits for eligibility under the category. We are awaiting clarification from the Department of Labor as to specific requirements. In the meantime, we will interpret the law as broadly as possible for establishing eligibility.

We anticipate a short window for submitting retroactive 8850’s for those persons hired in 2015 prior to December 18, 2015.

The veteran categories include:

  • Up to $9,600 in tax credits for disabled veterans who received more than six months of unemployment benefits in the last twelve months.
  • Up to $5,600 in tax credit for veterans who received more than six months of unemployment benefits in the last twelve months.
  • Up to $4,800 in tax credits for disabled veterans within one year of leaving the military.
  • Up to $2,400 in tax credits for veterans who received unemployment benefits more than four weeks within the last year.