The extender bill, which was created to enforce a two-year extension of numerous tax provisions, including the WOTC (Work Opportunity Tax Credit) Program, is still lingering in legislation. However, the extender bill is predicted to be passed by Congress by the end of the year, as it has historically been done.

At this point, you should still pre-screen all new hires for the tax credit so your WOTC program documentation is ready when you need it. This is also a great time to educate yourself on eligibility determinations.

Tip #1: Be complete.

Be complete, not just in filling out the form correctly, but in what you attach to your WOTC program package as supporting documentation. While the state verifies most application details, they also make mistakes. Include everything you can to verify your claim – this increases the likelihood of an approval.

Tip #2: Be timely.

There are some fairly specific submission timelines for the WOTC application process. Applications that aren’t submitted within the 28-day time limit required by law must be denied.

Here are some specifics regarding application deadlines:

• Applications must be postmarked within 28 days after the new hire starts work, or faxed within 28 days, if your state accepts faxed applications. Or, you may submit your application through your state’s online application system within 28 days after the new hire’s start date.

• Employers must keep a copy of proof of mailing or faxing to document timelines in case their application is lost in the mail or misplaced, and to verify timely submission of the application during any potential future IRS audit.
  
  
• When the last day of the 28th calendar day period ends on a Saturday, Sunday or holiday, the next succeeding business day will be treated as the last day of the 28-day period.

Tip #3: Confirm you have the latest forms.

Always confirm that you have the most current version of the following forms, because older versions are no longer valid:

• IRS Form 8850: This is a pre-screening notice and certification request for the WOTC.

• ETA Form 9061 or ETA Form 9062: One of these forms must be completed and submitted to your state’s workforce agency (SWA) to complete the WOTC application.

Tip #4: Take advantage of electronic submission.

While the electronic submission process is optional for the WOTC application package, it’s a convenient online feature.

Approval for the WOTC is determined on a first-come-first-serve basis. If you send in your application by mail, it may be delayed. When you file electronically, your information is already in the system, meaning no one has to take the time to add it in and further delay the state’s consideration of your application.

The WOTC is actually one of the most bipartisanly supported extenders. That is why businesses are still encouraged to operate as though the tax credit is alive and viable. When the extender bill is passed, you’ll be fully prepared to put together and submit your application for approval.

Ready to learn more about specific program details of the WOTC? Download your complimentary, educational guide.