A new notice from the Internal Revenue Service provides transitional relief for eligible employers who want to claim the Work Opportunity Tax Credit ( WOTC ), as retroactively extended by the American Taxpayer Relief Act of 2012. The transitional relief gives employers extra time until April 29th to file the necessary form to claim the credit for certain eligible workers.
The WOTC allows employers that hire certain targeted group members, including qualified veterans, an income tax credit equaling a percentage of qualifying first-year wages. Tax-exempt employers may be eligible for a payroll tax credit.
The Act retroactively extended the WOTC so that it applies to eligible veterans and non-veterans who begin work for an eligible employer before January 1, 2014.
