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Employers get grace period for Work Opportunities Tax Credits

March 11, 2016

Employers, including staffing firms, are getting more time to file for the Work Opportunity Tax Credit for hiring qualified workers during 2015.

The deadline to file for Work Opportunities Tax Credit for a newly hired employees is normally 28 days after a qualified person is hired, but new IRS guidance this month allows a grace period for employers, according to TC Services USA, a Work Opportunities Tax Credit software firm.

Now, companies have until June 29 to file for tax credits for all new employees hired between Jan. 1, 2015, and May 31, 2016, according to TC Services. However, they must act to include the credits on their 2015 tax return.

The extension on the Work Opportunities Tax Credit was initially approved as part of the PATH Act signed into law in December. The act also added the long-term unemployed as a qualified group on which employer can claim a credit starting with January 2016 hires.