April 30, 2014
The tax extenders bill, EXPIRE Act of 2014, has been introduced as S.2260 and placed on the Senate calendar.
The bill extends WOTC through December 31, 2015 and is retroactive to December 31, 2013.
Text of the bill is available at www.congress.gov.
Section 119 of the bill establishes a new WOTC target group, “qualified long-term unemployment recipient.” The relevant provision is as follows:
“(15) Qualified long-term unemployment recipient.—The term ‘qualified long-term unemployment recipient’ means any individual who is certified by the designated local agency as being in a period of unemployment which—
(A) Is not less than 27 consecutive weeks, and
(B) Includes a period in which the individual was receiving unemployment compensation under State or Federal law.
“Effective Date.—The amendments made by this section shall apply to individuals who begin work for the employer after December 31, 2013.”
In view of these provisions, it would be prudent for employers to begin screening new hires and preparing requests for certification of long-term unemployed individuals hired after last December 31st. This is because we anticipate Treasury and Labor will follow their past practice of allowing a grace period for filing requests for certification of these individuals, should the bill become law.
True, the bill may not become law in its current form, and may not pass the House until after the election; employers must weigh these contingencies and decide for themselves whether they wish to make the effort.
The Senate will vote at noon on the bill to raise the minimum wage; the motion to limit debate and take up the EXPIRE Act, which requires 60 votes for passage, can come up any time after that. However, Senator Reid may choose to vote again on the bill to extend unemployment compensation, or take up a bill on equal pay for women; this would move action on the EXPIRE Act into next week or later.
We will keep you informed.
PAUL E. SUPLIZIO
President, WOTC Coalition