Tax Credits & Incentives

Work Opportunity Tax Credit Transition Relief Issued for Empowerment Zones

On December 11, 2020 the IRS issued Notice 2020-78 providing additional instruction and transitional relief for employers that hired certain individuals residing in empowerment zones between January 1, 2018 and December 31, 2020.

Empowerment Zones are distressed areas that have been designated based on specific criteria and benefit from tax incentives, grants, and other forms of government assistance. Section 51 of this notice provides employers with a work opportunity tax credit for hiring certain individuals that identify with a targeted group. The Empowerment Zone designations under section 1391 expired after December 31, 2017 and were retroactively reauthorized on December 20, 2019, for tax years beginning January 1, 2018, through December 31, 2020.

Employers must receive, on or before the day on which such individual begins work for the employer, a certification from a Designated Local Agency that such individual is a member of a targeted group or must request certification that the individual is a member of a targeted group by submitting Form 8850 (Pre-Screening Notification and Certification Request for the Work Opportunity Credit) to a Designated Local Agency within twenty-eight days of hiring that individual. The certification of an individual as a Designated Community Resident under § 51(d)(5), or as a Qualified Summer Youth Employees under § 51(d)(7), requires that the individual reside within an empowerment zone.

This renewal allows employers to timely request certification on these employees by extending the deadline through January 28, 2021 for a Designated Community Resident or Empowerment Zone individual hired in 2018, 2019, and 2020.

As always, if there are any questions please do not hesitate to contact us or visit our website at

Join Thomas & Company at the Tennessee Statewide Payroll Conference

Thomas & Company is honored to be the Diamond Sponsor and Website Sponsor of the Tennessee Statewide Payroll Conference. This year’s conference will be held on August 8-10, 2018 at The Embassy Suites & Conference Center in Murfreesboro, TN.

Are you a current Thomas & Company client? Let us know you are coming and check in at the booth for a special gift.

I’m Attending!

You can find a list of speakers and topics for this year’s conference at the Tennessee Statewide Payroll Board website. Note that Thomas & Company will be speaking Thursday, August 9th at 8am on “Unemployment Tax Opportunities: Mergers, Acquisitions, or Other Business Changes”. I look forward to seeing many of you there.

The Tennessee Statewide Payroll Board (TSWB), Region 7 of the American Payroll Association, was established in 2011. TSWV is an independent Board made up of non-paid/volunteer Directors (9) and their Committees. The Board was established in 2011 to alleviate the burden associated with planning a successful TN Payroll Conference Event.  TN Chapters can volunteer to host a conference event and the TSWB will assist them in planning.

TSWB is a member of the American Payroll Association (APA), is the leading advocate to those in the payroll community with a mission to create the opportunity for education, skills, and resources necessary for payroll professionals to become successful leaders and strategic partners within their organizations. By attending events such as the Tennessee Statewide Payroll Conference, Thomas & Company shows our support for the many payroll departments we work with when assisting our clients with Unemployment Cost Management and/or Employment & Wage Verification.

As always, if there are any questions please do not hesitate to contact us.