This webcast will focus on the effects of proposed regulations that would make it more challenging to qualify employees for the California Enterprise Zone Hiring Credit.
At approximately $37,440 per qualified new hire, California's Enterprise Zone (EZ) Hiring Credit may be the most generous tax credit of its kind currently offered by any state. Further, unlike the federal Work Opportunity Tax Credit (WOTC), where you must generally submit paperwork within 28 days of hire to qualify, under current procedures taxpayers are allowed to retroactively apply for the EZ Hiring Credit. However, proposed regulations when finalized will severely limit the ability to retroactively apply for credits and significantly increase documentation requirements, including third-party verification of employee residence. These changes are expected to have a significant impact on the ability to obtain credits under this program going forward.
PwC's panel of specialists will provide insight into the impact of the proposed changes, including actions to consider, and related issues such as the impact these changes will have on the City of San Francisco's payroll tax and new gross receipts tax. The panel will also discuss existing California income tax reporting considerations with respect to the credit.