Congress has approved a two-month renewal of payroll tax cuts for 160 million workers and unemployment benefits for millions of Americans. As a result of this extension, the payroll tax rate will be kept at 4.2 percent until the end of February. At this juncture, conferees will be appointed by the Senate in order to complete the 12 month bill.
As such, WOTC and the tax extenders will expire on January 1st; however, there is still an opportunity for an extension to be incorporated into the payroll bill.
Walton again encourages employers benefiting from these tax credits programs to contact their congressional representatives to communicate the benefits these programs provide to their business.