There is some good news for Texas employers! Due to the severe winter storms, you have been given a WOTC deadline extension. You will be able to submit WOTC applications for employees hired on or after January 14, 2021, up to June 15, 2021! Here are the details…
The Internal Revenue Service (IRS) has granted a tax filing relief period for victims of the Texas Severe Winter Storm. For those affected by the disaster, the filing relief extends the 28-day Work Opportunity Tax Credit (WOTC) submission deadline. The new deadline is June 15, 2021, for WOTC requests that were due on or after February 11, 2021, and before June 15, 2021. Specifically, this applies to WOTC Certification requests with an employment start date on or after January 14, 2021, and on or before May 17, 2021. Businesses affected by this filing relief period are those whose qualifying employee, company, or WOTC consultant is located in a declared disaster area, which is the entire state of Texas. For additional information, refer to Notice IR-2021-43.
What is WOTC and what it means for Texas employers?
WOTC is a Federal Program for employers who hire and retain veterans and individuals from other target groups with significant barriers to employment. Employers can earn up to $9,600 per eligible employee. Also, there is no limit to the number of tax credits employers can claim! WOTC is not only intended to incentivize employers but provides considerable benefits to the community.
If you are an employer in Texas, we will be able to submit WOTC applications up to June 15, 2021, for eligible new hires who started working for you on or after January 14, 2021, on your behalf. The good news is Efficient Hire can take care of the whole process. New hires are screened during onboarding, and we handle submitting to the designated State Workforce Agency. You also get all the credit!
For high-turnover industries focused on hiring hourly employees, it’s common to hire employees that qualify for the WOTC. For companies with significant annual hiring volume, using these credits can help you reduce your company’s income tax liability by tens of thousands of dollars.
Help with WOTC Deadline Extension
Get in touch with Efficient Forms today to learn more about the WOTC deadline extension. We can also help you determine what WOTC can do for you!