Great news for employers!Read More
Emptech Blog (formerly ETS Blog)
Topics: hiring credit
Editor's note: This is a guest article from subject matter expert Noelle Harling of Frasco Profiles, Emptech's Background Check partner.
Has your company undergone a recent name change? Has your legal name remained effectively the same but you are now operating as ABC, LLC instead of ABC, Inc.? From an employment tax reporting perspective, these relatively "superficial" changes are, in fact, considered formal "Type F" Reorganizations, as classified in the IRC and require special treatment and reporting.
Type F events are so relatively insignificant (compared to other types of reorganization) that their associated reporting requirements are often not fully completed. With that in mind, here's a closer look at post-Type F compliance.
Important! There was an important update to WOTC credit eligibility since this blog was published. Please refer to this newer blog post for time-sensitive tax credit information.
The WOTC Credit Program, allowed to lapse for nearly all of 2014, was retroactively reinstated in late December.
Many employers know by now that a lapse in the federal Work Opportunity Tax Credit (WOTC) program should not deter them from making strategic hiring decisions and submitting timely WOTC certification requests.Read More
Recently, the Department of Labor (DOL) released a list of final FUTA credit reduction states for the 2014 tax year (available here). The number of states subject to FUTA credit reduction continues to decline, with just ten states impacted for 2014. In 2013, thirteen states were ultimately subject to FUTA credit reduction. For the 2012 tax year, it was nineteen states.
The Supreme Court has finally issued a ruling on the Quality Stores / FICA severance pay taxability issue that has been winding its way through the various courts based on circumstances that now reach back over a decade (Quality Stores filed bankruptcy in 2001 and the issue stems from related layoffs of approximately 4,000 employees).
Here's another I-9 compliance "horror story" about an employer who actually has been utilizing an electronic I-9 software solution since 2006. (As an aside, I-9 software is a great answer to the I-9 compliance equation.....assuming your provider is legit - something Abercrombie recently found out the hard way, to the tune of $1M).
At Employment Technology Solutions, we have been very busy at the close of 2013 and into 2014 assisting our clients with Employment Tax Compliance and Tax Optimization issues related to their Mergers & Acquisitions.
With the arrival of the New Year, the Work Opportunity Tax Credit (WOTC) was allowed to lapse. For employers engaged in the WOTC hiring credit program, however, this lapse is no great cause for concern. Congress has historically proven just as capable at permitting WOTC to lapse as it has at reauthorizing the credit and retroactive collection soon thereafter.