Upload
others
View
1
Download
0
Embed Size (px)
Citation preview
CAHSAH® 2016 Annual Conference & Home Care Expo
1 2016 California Association for Health Services at Home
The Work Opportunity Tax Credit (WOTC) for home care
Derek Jones
ClearCare Online
Thank You To Our Session Sponsor, ClearCare!
Stop By Booth #213!
CAHSAH® 2016 Annual Conference & Home Care Expo
2 2016 California Association for Health Services at Home
May 10-12, 2016 CAHSAH 50th Anniversary Annual Conference 3
Download this presentation
Tool This Presentation: www.clearcareonline.com/cahsah-download
May 10-12, 2016 CAHSAH 50th Anniversary Annual Conference 4
About Me
• Originally a Botany Research Scientist
• Lead Marketing and Agency Education at ClearCare Online, San Francisco
• Previously VP Marketing for a private-duty national franchise brand with 200+ locations
• Managed a 700 client regional private-duty agency in Pennsylvania
• Launched 50 new offices with <10% failure
CAHSAH® 2016 Annual Conference & Home Care Expo
3 2016 California Association for Health Services at Home
May 10-12, 2016 CAHSAH 50th Anniversary Annual Conference 5
About ClearCare
May 10-12, 2016 CAHSAH 50th Anniversary Annual Conference 6
Tool
CAHSAH® 2016 Annual Conference & Home Care Expo
4 2016 California Association for Health Services at Home
May 10-12, 2016 CAHSAH 50th Anniversary Annual Conference 7
Technology is changing our industry
has changed
May 10-12, 2016 CAHSAH 50th Anniversary Annual Conference 8
New, technology-focused entrants promise innovative models
1995 1994 2006 2011 2013 2014 2015
“Client First” New “Tech First” Entrants
$20 million financing April 2015
$23 million financingJune 2015
CAHSAH® 2016 Annual Conference & Home Care Expo
5 2016 California Association for Health Services at Home
May 10-12, 2016 CAHSAH 50th Anniversary Annual Conference 9
May 10-12, 2016 CAHSAH 50th Anniversary Annual Conference 10
CAHSAH® 2016 Annual Conference & Home Care Expo
6 2016 California Association for Health Services at Home
May 10-12, 2016 CAHSAH 50th Anniversary Annual Conference 11
May 10-12, 2016 CAHSAH 50th Anniversary Annual Conference 12
CAHSAH® 2016 Annual Conference & Home Care Expo
7 2016 California Association for Health Services at Home
May 10-12, 2016 CAHSAH 50th Anniversary Annual Conference 13
The Tech Entrant Playbook
• Market share first, profit margins second
• Success in 1 geo-metro results in larger rounds of capital
• Put profit margin pressure on incumbent ‘client first’ agencies (you)
• Lock-up and command the supply of caregivers
May 10-12, 2016 CAHSAH 50th Anniversary Annual Conference 14
The Good News…
You can punch back!
CAHSAH® 2016 Annual Conference & Home Care Expo
8 2016 California Association for Health Services at Home
May 10-12, 2016 CAHSAH 50th Anniversary Annual Conference 15
WOTC
• The Work Opportunity Tax Credit (WOTC) is a Federal taxcredit available to employers who hire individuals fromeligible target groups with significant barriers toemployment.
• WOTC can reduce an employer’s effective tax rate via a tax credit
• There is no limit on the number of employees submitted
• Credit is based on how many hours worked and how much theyare paid
May 10-12, 2016 CAHSAH 50th Anniversary Annual Conference 16
WOTC Understanding
How familiar are you with the Work Opportunity Tax Credits Program?
Does your agency participate in the WOTC Program?
CAHSAH® 2016 Annual Conference & Home Care Expo
9 2016 California Association for Health Services at Home
May 10-12, 2016 CAHSAH 50th Anniversary Annual Conference 17
Steps of the Program
Qualified Criteria?
Work 120 hours?
Work 400 hours?
20% of wages up to max benefit
40% of wages up to max benefit
Complete on date of hire & submit within 28-days?
Submit on taxes
May 10-12, 2016 CAHSAH 50th Anniversary Annual Conference 18
Steps of the Program
TOOL What are the most common qualified employees?http://clearcareonline.com/tax-credit-download/
Qualifying Veteran Category Max Tax Credit Benefit
Veteran: SNAP (food stamps) $2,400
Veteran: Service connected disability,hired one year from leaving service
$4,800
Veteran: Service connected disability, Unemployed at least 6 months
$9,600
Veteran: Unemployed at least 4 weeks $2,400
Veteran: Unemployed at least 6 months
$5,600
Other Qualifying Categories Max Tax Credit Benefit
Short-Term TANF Recipient $2,400
Long-Term TANF Recipient (> 2 yrs) $9,000
SNAP (food stamp) recipient $2,400
Designated Community Resident $2,400
Vocational Rehabilitation Referral $2,400
Ex-Felon $2,400
Supplemental Security Income Recipient
$2,400
Summer Youth $1,200
CAHSAH® 2016 Annual Conference & Home Care Expo
10 2016 California Association for Health Services at Home
May 10-12, 2016 CAHSAH 50th Anniversary Annual Conference 19
How is the credit calculated?
1. Does the caregiver meet one of the eligible WOTC employee categories?
2. If yes, how many hours has employee worked from their start date?
Typical Scenario- Must work a minimum of 120 hours- 120-399 hours worked = 25% of wage up to the maximum benefit- >400 hours, 40% of wage up to maximum benefit
EXAMPLE: Unemployed Veteran with service-connected disability- $12 / hour earned- 400 hours x $12 = $4,800 waged earned- Tax credit = $1,920 if retained for the whole year- @ 2,000 hours , tax credit = maximum benefit of $9,600 ($12 x 2,000 hours x 40%)
May 10-12, 2016 CAHSAH 50th Anniversary Annual Conference 20
How is the credit calculated?
‘Typical’ Agency:
• 50 caregivers
• 15-20% qualify
• $1,800 is the average for health care
EXAMPLE:
50 caregivers x 17.5% = 9 eligible employees x $1,800 avg credit = $16,000 tax credit
CAHSAH® 2016 Annual Conference & Home Care Expo
11 2016 California Association for Health Services at Home
May 10-12, 2016 CAHSAH 50th Anniversary Annual Conference 21
How do I file?
Form 8850Pre-Screening Notice and Certification Request for the Work Opportunity CreditEmployers use this form to pre-screen and to make a written request to their state workforce agency (SWA) to certify an individual as a member of a targeted group for purposes of qualifying for the work opportunity credit.
Form 9061Individual Characteristics Form
Form 9062Conditional Certification
Form 5884Tax reporting form – used to report WOTC with tax return
May 10-12, 2016 CAHSAH 50th Anniversary Annual Conference 22
How do I file?
Applicant receives IRS Form 8850
on or before 1st day at
work
Applicant receives IRS Form 8850
on or before 1st day at
work
8850 Form Signed/Sent
to GIS
8850 Form Signed/Sent
to GIS
8850 Rec’d/GIS generates
9061, mails to govt.
8850 Rec’d/GIS generates
9061, mails to govt.
GIS is updated with govt. agency
response/ status
GIS is updated with govt. agency
response/ status
Client is informed of
Status
Client is informed of
Status
WOTC certificate
stored
WOTC certificate
stored
CAHSAH® 2016 Annual Conference & Home Care Expo
12 2016 California Association for Health Services at Home
May 10-12, 2016 CAHSAH 50th Anniversary Annual Conference 23
After submission, what next?
Completed 8850, 9061 and all necessary documentation are submitted to the applicable state agency for review.
State agency responds to confirm eligibility:
Certification – allows the credit to be calculated and taken for all qualified wages.
Denial – the state determines that the associate has not met the criteria to allow their employer to take the WOTC credit.
Needs Letter – the state is requesting additional information/documentation to be submitted for further consideration of the certification. Once the necessary information/documentation is received by the state the Certification process begins again.
May 10-12, 2016 CAHSAH 50th Anniversary Annual Conference 24
UPDATES
• Long-Term Unemployment Recipients group.• (27 months who collected unemployment)
• WOTC renewal through Dec 21st, 2019
• Lookback period approved until June 29th, 2016• For Caregiver hires between 1/1/15 – 5/31/16
CAHSAH® 2016 Annual Conference & Home Care Expo
13 2016 California Association for Health Services at Home
May 10-12, 2016 CAHSAH 50th Anniversary Annual Conference 25
FAQs
• Can I file for caregivers who are no longer employed?
• What if another agency has claimed the caregiver?
• How long do I have to meet the 120 hours?
• Can a caregiver qualify for >1 tax credit?
CAHSAH 50th Anniversary Annual Conference 26
Session Sponsor
Visit ClearCare at Booth # 213!
CAHSAH® 2016 Annual Conference & Home Care Expo
14 2016 California Association for Health Services at Home
Speaker Information
Derek Jones, CSASr. Director of Marketing
ClearCare On line650 Townsend St, San Fran CA, 94103
PhoneFax
Please Make this be your Final Slide
May 10-12, 2016 CAHSAH 50th Anniversary Annual Conference 28