Work Opportunity Tax Credit (WOTC) Program Extended to December 31, 2013

*Take advantage of this extension and the IRS Transition Relief for filing paperwork!  If you hired any new employees from January 1, 2012 to March 31, 2013,  you may be able to earn a tax credit for each new employee hired if they qualify under one of the targeted groups.  All paperwork must be submitted to St. Paul by April 29, 2013 to be timely!
 

The Work Opportunity Tax Credit (WOTC) is a federal tax credit available to all private sector businesses as an incentive to employers to hire workers in certain** groups who consistently experience high rates of unemployment. Click here for: Work Opportunity Tax Credit (WOTC) Information  

The tax credit allows employers to reduce their federal tax liability by up to $9,600 per new hire. For-profit businesses of any size qualify. 501(c) non-profits qualify for the veteran target groups only. And the tax credit applies to temporary, seasonal, part-time and full-time workers. The tax credit is available for new hires with job start dates through December 31, 2013.

The WOTC applies only to new employees who have never worked for the hiring employer at any other time.

• Any size for-profit employer may apply for the WOTC.
• 501(c) non-profit employers may apply for the WOTC for the veteran target groups only.
• No limit to the number of new hires an employer may claim for the WOTC in any calendar year.
• No relatives or dependents or majority business owners qualify as WOTC hires.
• Self-employed individuals do not qualify as WOTC hires.
• Temporary, seasonal, part-time and full-time work applies.
• Any type of job is acceptable.

**NOTE: There are a number of Qualifying Groups, but one you might be especially interested in taking advantage of is Group 4 – the Designated Community Resident:  An eligible individual may be age 18 but not yet 40 years old on the hire date and lives in a Rural Renewal County (RRC) The Rural Renewal Counties are Big Stone, Chippewa, Cottonwood, Faribault, Jackson, Kittson, Koochiching, Lac qui Parle, Lincoln, Marshall, Martin, Murray, Norman, Pipestone, Red Lake, Redwood, Renville, Stevens, Traverse, Wilkin and Yellow Medicine. 

NOTE: Minnesota employers who hire employees living in certain counties in Iowa, North Dakota and South Dakota may also claim the tax credit.

• Iowa: Emmet, Kossuth, Osceola, Winnebago and Worth
• North Dakota: Pembina, Traill and Walsh
• South Dakota: Deuel and Grant

WOTC applications for residents living in these counties and working in Minnesota should be mailed to the Minnesota WOTC Unit.

Take advantage of this tax credit for new hires!  More information is available at these websites

Info from MN DEED website:  http://www.positivelyminnesota.com/Business/Finding_Workers/Hiring_Incentives_Credits/Work_Opportunity_Tax_Credit.aspx

Info from US Dept of Labor:  http://www.doleta.gov/business/incentives/opptax/

US Dept of Labor WOTC brochure:  http://www.doleta.gov/business/incentives/opptax/PDF/employers_wotc_program_brochure_5_24_12.pdf

*IRS Transition Relief for Filing IRS Form 8850

1.       Transition relief for taxable employers that hire members of targeted groups (other than qualified veterans)
A taxable employer that hires a member of a targeted group (as defined in § 51(d)(2) through (10), other than a qualified veteran described in § 51(d)(3)) on or after January 1, 2012, and on or before March 31, 2013, will be considered to have satisfied the requirements of § 51(d)(13)(A)(ii) if it submits the completed Form 8850 to the DLA to request certification not later than April 29, 2013.

2. Transition relief for all employers that hire qualified veterans
   An employer that hires any qualified veteran described in § 51(d)(3) on or after January 1, 2013, and on or before March 31, 2013, will be considered to have satisfied the requirements of § 51(d)(13)(A)(ii) if it submits the completed Form 8850 to the DLA to re-quest certification not later than April 29, 2013.

Contact the Minnesota WOTC Unit
Telephone: 651.259.7507
Toll Free: 888.234.5521
Fax: 651.297.7722
Email: deed.wotc@state.mn.us