BEAT THE NEW *WORK OPPORTUNITY TAX CREDIT* DEADLINE

Dear friends of RC Jones & Associates

The new economic stimulus law enacted earlier this year -- the American Recovery and Reinvestment Act of 2009 -- expanded the Work Opportunity Tax Credit (WOTC) to include more workers. Now employers can claim the credit for certain unemployed veterans and "disconnected youth" hired in 2009 and 2010.

But you must request certification of these workers by Aug. 17, 2009. In a new Notice, the IRS has established this as an extended cutoff date for making requests to the appropriate state workforce agency.

For this purpose, an "unemployed veteran" is defined as someone who has been discharged or released from the military during the five years preceding the hiring date and who has received unemployment benefits for at least four weeks during the one-year period ending on the hiring date. A “disconnected youth” is a person who is between the ages of 16 to 24 on the hiring date and has not been regularly employed or is attending school and meets other requirements.

The WOTC is generally equal to 40% of the first $6,000 of the worker's first-year wages, assuming the worker completes a minimum of 400 hours of service. Thus, the maximum credit per targeted worker is $2,400. The WOTC is reduced to 25% of qualified wages for workers who complete less than 400 hours of service, for a maximum credit of $1,500 per worker.

Remember that the WOTC is also available for workers in 10 other targeted groups. Certification requirements apply to workers in all the other groups except employees who were Hurricane Katrina victims.

The WOTC can reduce your company's tax bill on a dollar-for-dollar basis. RC Jones & Associates can provide whatever assistance you need in this area. One of our expert staff will be glad to answer all your questions; simply call us at (816) 792-9966.

Very truly yours,

Robert C. Jones

www.rcjonesinc.com