I have two great updates to share with you this week. 

The first update is in regard to the Training and Employment Guidance Letter (TEGL).  The IRS issued a reminder to businesses that are planning to claim the work opportunity tax credit for eligible unemployed veterans and disconnected youth hired before mid-September. The TEGL also provides guidance to State Workforce Agencies on acceptable documentation and processing for the new WOTC categories.   Businesses have until October 17, 2009 to request the certification required for these employees. A business usually files Form 8850 with the state workforce agency within 28 days after the eligible worker begins work. Under the extended period granted, businesses have until October 17, 2009, to file this form for unemployed veterans and disconnected youth who began work on or after January 1, 2009, and before September 17, 2009.

The second update is in regard to President Obama’s economic team seeing the value in job creation.  The New York Times article “Support is Building for a Tax Credit to Help Hiring” addressed the possibility of Washington creating a tax credit to stimulate hiring.  One version of the hiring credit will be revealed this week.  The proposed credit would give employers a two-year tax credit if they increased the size of their work force or added significant hours of work. Employers would receive a credit worth twice the first-year payroll tax for each new hire.  

Angela Lockman