With the number of tax incentives and economic stimulus plans being put into place right now, it can quickly and understandably become confusing.  Cutting through the excess language it is important to understand that the $1 trillion in benefits  will be received by two new WOTC target groups:

• Incentives for new jobs
• Incentives to hire unemployed veterans and disconnected youth.

Any unemployed veteran or disconnected youth who begins work for the employer during 2009 or 2010 shall be treated as a member of a targeted group.

Definitions

The term `unemployed veteran’ means any veteran who is certified by the designated local agency as having been discharged or released from active duty in the Armed Forces during 2008, 2009, or 2010, and being in receipt of unemployment compensation under State or Federal law for not less than 4 weeks during the 1-year period ending on the hiring date.

The term `disconnected youth’ means any individual who is certified by the designated local agency as having attained age 16 but not age 25 on the hiring date, as not regularly attending any secondary, technical, or post-secondary school during the 6-month period preceding the hiring date, as not regularly employed during such 6-month period, and as not readily employable by reason of lacking a sufficient number of basic skills.’.

When Does This Start?

The amendments made by this section shall apply to individuals who begin work for the employer after December 31, 2008.

If you want more information, please contact us directly here.

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This entry was posted on Wednesday, February 4th, 2009 at 5:00 am and is filed under Tax News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.