July 28, 2020

Senate Stimulus Plan Calls for Expanded Tax Credits Including WOTC

Yesterday, the Senate Finance committee released their plan for the next stimulus package. This will be the starting point for negotiations between the Senate Republicans and House Democrats. The 12 page document addresses several key areas from the prior CARES Act and also includes a temporary expansion of the WOTC  program. 

The plan calls for the creation of a 2020 qualified COVID-19 unemployment recipient which would be anyone hired in 2020 that is currently receiving or eligible to receive unemployment compensation at the time of their hire or during the preceding week prior to their hire. Also, unlike the existing WOTC target groups, a person under the temporary group is allowed to have previously worked for the employer. The amount of credit for this temporary group would be equal to 50% of the first $10,000 in qualified wages. It is not clear at this time if any provision would allow for retroactive screening of employees already hired in 2020.

If they are able to come to an agreement on another stimulus bill with the temporary WOTC expansion in place, that could help to set up renewal efforts later this year for WOTC as it may be likely that we continue to see the need for COVID-19 unemployed well into 2021.

We will keep you informed as updates become available. Please contact me with any questions at raj.gill@hiringincentives.com.