{"id":1054,"date":"2009-05-30T16:07:13","date_gmt":"2009-05-30T20:07:13","guid":{"rendered":"https:\/\/old.visionpayroll.com\/kb\/?p=1054"},"modified":"2009-05-30T16:07:13","modified_gmt":"2009-05-30T20:07:13","slug":"irs-issues-guidance-on-work-opportunity-tax-credit-in-notice-2009-28","status":"publish","type":"post","link":"https:\/\/old.visionpayroll.com\/kb\/2009\/05\/irs-issues-guidance-on-work-opportunity-tax-credit-in-notice-2009-28\/","title":{"rendered":"IRS Issues Guidance on Work Opportunity Tax Credit in Notice 2009-28"},"content":{"rendered":"

The Internal Revenue Service (IRS)<\/a> recently issued Notice 2009-28<\/a> offering guidance on the Work Opportunity Tax Credit (WOTC) under \u00a751 of the Internal Revenue Code of 1986 (IRC)<\/a>. Under the American Recovery and Reinvestment Act of 2009 or ARRA, unemployed veterans and disconnected youth were both added as members of a targeted group for purposes of the WOTC.<\/span><\/p>\n

IRC \u00a751<\/a> defines veteran, unemployed veteran, and disconnected youth. According to Notice 2009-28<\/a> a veteran is someone:<\/span><\/p>\n

    \n
  1. \n
    Having served on active duty (other than active duty for training) in the Armed Forces of the United States (Armed Forces) for a period of more than 180 days; or<\/span><\/div>\n<\/li>\n
  2. \n
    Having been discharged or released from active duty in the Armed Forces for a service-connected disability.<\/span><\/div>\n<\/li>\n<\/ol>\n

    Notice 2009-28<\/a> also reiterates that an unemployed veteran is someone \u201ccertified by the designated local agency\u201d as:<\/span><\/p>\n

      \n
    1. \n
      Having been discharged or released from active duty in the Armed Forces at any time during the 5-year period ending on the hiring date; and<\/span><\/div>\n<\/li>\n
    2. \n
      Being in receipt of unemployment compensation under State or Federal law for not less than four weeks during the one-year period ending on the hiring date.<\/span><\/div>\n<\/li>\n<\/ol>\n

      According to Notice 2009-28<\/a>, a disconnected youth is defined as \u201cany individual who is certified by the designated local agency\u201d as:<\/span><\/p>\n

        \n
      1. \n
        As having attained age 16 but not age 25 on the hiring date;<\/span><\/div>\n<\/li>\n
      2. \n
        As not regularly attending any secondary, technical, or post-secondary school during the 6-month period preceding the hiring date;<\/span><\/div>\n<\/li>\n
      3. \n
        As not regularly employed during such 6-month period; and<\/span><\/div>\n<\/li>\n
      4. \n
        As not readily employable by reason of lacking a sufficient number of basic skills.<\/span><\/div>\n<\/li>\n<\/ol>\n

        Notice 2009-28<\/a> also defines \u201cnot regularly attending any secondary, technical, or post-secondary school\u201d, \u201cnot regularly employed\u201d, and \u201cnot readily employable by reason of lacking a sufficient number of basic skills\u201d.<\/span><\/p>\n

        \u201cNot regularly attending any secondary, technical, or post-secondary school\u201d is defined as someone who \u201cstates in writing that during the six months preceding his or her hiring date, he or she has not attended a secondary, technical or postsecondary school for more than an average of 10 hours per week, not counting periods during which the school is closed for scheduled vacations.\u201d For this purpose, a secondary school is either \u201ca secondary school as defined in 20 USC \u00a77801(38)<\/a>; or a for-profit secondary school that otherwise meets the definition in 20 USC \u00a77801(38)<\/a>.\u201d<\/span><\/p>\n

        \u201cNot regularly employed\u201d is defined as someone who \u201cduring each consecutive three-month period within the six months preceding his or her hiring date, <\/span>the individual earned less than an amount equal to the gross amount he or she would have been paid at the [higher of the federal or applicable state] minimum wage if he or she worked 30 hours every week during the three-month period.\u201d<\/span><\/p>\n

        \u201cNot readily employable by reason of lacking a sufficient number of basic skills\u201d is defined as someone who \u201cstates in writing that he or she does not have a certificate of graduation from a secondary school or a GED Certificate\u201d or someone who \u201cstates in writing that he or she has a certificate of graduation from a secondary school or a GED Certificate that was awarded no less than 6 months preceding his or her hiring date and has not held a job or been admitted to a technical school or post-secondary school since receiving the certificate.\u201d<\/span><\/p>\n

        In order to receive the WOTC, an employer is generally required to obtain certification on or before the day the individual begins work or to complete Form 8850<\/a> on or before the date employment is offered and to submit Form 8850<\/a> within twenty-eight days from when the individual starts employment. Notice 2009-28<\/a> provides transitional relief for employers hiring unemployed veterans or disconnected youth after December 31, 2008 and before July 17, 2009. Employers will be eligible as long as Form 8850<\/a> is submitted to the designated local agency before August 18, 2009.<\/span><\/p>\n

        Contact Vision Payroll<\/a> if you have any questions on Notice 2009-28<\/a> or the WOTC.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

        The Internal Revenue Service (IRS) recently issued Notice 2009-28 offering guidance on the Work Opportunity Tax Credit (WOTC) under \u00a751 of the Internal Revenue Code of 1986 (IRC). Under the American Recovery and Reinvestment Act of 2009 or ARRA, unemployed veterans and disconnected youth were both added as members of a targeted group for purposes […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[4],"tags":[795,819,918,915,321,14,914,917,916,912,913],"_links":{"self":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/1054"}],"collection":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/comments?post=1054"}],"version-history":[{"count":4,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/1054\/revisions"}],"predecessor-version":[{"id":1058,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/1054\/revisions\/1058"}],"wp:attachment":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/media?parent=1054"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/categories?post=1054"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/tags?post=1054"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}