WOTC/WtW RENEWED THROUGH AUGUST 31, 2011

President Bush signed H.R. 2206 (U.S. Troops Readiness, Veterans' Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 2) on May 25, 2007, extending the Work Opportunity Tax Credit ("WOTC") through August 31, 2011. The legislation also expands eligibility for the WOTC tax credit, including extending the maximum age for designated community residents to 40, adding disabled veterans to the targeted groups, and increasing the amount of wages taken into account for disabled veterans from $6,000 in wages to $12,000 in wages. This legislation adds to the already significant changes to the WOTC Program following the passage of H.R. 6111 on December 20, 2006, which expanded eligiblity for the WOTC tax credit, including extending the maximum age for food stamp recipients from 25 to 40 and removing the family income requirement for ex-felons; combining the WOTC and WtW programs; and increasing the percentage of tax credit allowed under WOTC from 35 to 40 percent for the first year. The increased percentage for the tax credit translates into greater savings for companies as employers can now claim a tax credit for both WOTC and WtW of 40 percent for an eligible employee's first year of employment (for up to $6,000 in wages under WOTC and up to $10,000 in wages for WtW).


Walton Management Services Announces Applicant Tracking Partnership with Cytvia

VANCOUVER, BC – September 22, 2006 – Cytiva Software Inc. (CRX: TSX:V), a leading provider of mid-market talent acquisition solutions, and Walton Management Services, Inc. (WMS), a leading business financial incentives services firm, providing incentives screening services, announced today the availability of a strategic relationship allowing SonicRecruit clients to take advantage of the Work Opportunity Tax Credit (WOTC) and Welfare to Work (WtW) tax credit programs and capital expenditure, workforce, and location-based incentive programs.

The announcement further strengthens Cytiva’s SonicEntree hourly hiring system by providing an integrated method of identifying new hires that qualify for special tax credits from the state and federal governments. Now, as part of the application process, SonicRecruit can track applicant information that is used to screen for WOTC and WtW eligibility and automatically provide that information to WMS to quickly identify applicants who may qualify for the credit. Under the WOTC and WtW programs, employers receive between $2,400 and $8,500 in tax credits per eligible employee (welfare, food stamp, rehabilitation recipients, etc., are eligible).

“Identifying WOTC eligible employees is a huge task for large companies, and a large percentage of potential credits simply go unclaimed” said Jason Moreau, CEO of Cytiva. “This new relationship allows SonicRecruit’s hourly clients to quickly and easily claim this and other credits, saving them thousands, even hundreds of thousands of dollars annually.”

Cytiva’s SonicEntree represents a strong hourly hiring solution for the hospitality, manufacturing and retail industries where the potential for WOTC credits is highest.

"It is our distinct pleasure to join industry leader Cytiva to offer the full range of employee-related services," said Walton Management Services CEO Fred Stiftel. "Our integration with the SonicRecruit and SonicEntree products enables Walton to combine our outstanding talent and specialized expertise in the financial incentive industry with the appropriate application of applicant tracking technologies to maximize savings and reduce operational and employment-related costs for our clients.”

With the Walton Management Services agreement, SonicRecruit’s stable of integrated third party services represents one of the most complete offerings in the industry for mid-sized organizations. WOTC eligibility screening joins the SonicRecruit menu as one of many resources available to SonicRecruit clients, including background checking, pre-employment assessment, resume processing, EEOC compliance services, and candidate sourcing.

About Cytiva Software Inc.
Cytiva Software Inc. (CRX:TSX-V) provides innovative recruiting products and services to mid sized and Fortune 500 companies. With its flagship product, SonicRecruit, corporations can automate their recruiting efforts and customize their corporate career sites. SonicRecruit, a premier talent acquisition system, improves recruiting effectiveness, speeding up the hiring process and reducing cost per hire.


Walton Management Services, Inc. and Barnett Associates Form Strategic Partnership to Provide Tax Credit and Unemployment Consulting.

Barnett Associates, the premier unemployment consulting firm in the United States and Walton Management Services, Inc., a leading business financial incentives services firm, announced today that they have formed a strategic alliance to provide an integrated unemployment and incentives screening services offering to employers.

Barnett Associates specializes in the areas of SUI tax management, claims administration, and employment verification.  As an industry leader in identifying legitimate unemployment tax saving opportunities across the United States, Barnett provides clients with superior services and accurate, timely information concerning their unemployment taxes, claims and job verifications.  Barnett's "UI Practice" analyzes all facets of employment and its financial effect on the bottom-line tax cost. SUTA Dumping legislation and Sarbanes Oxley have created a challenging environment for companies to correctly report SUI taxes.  Barnett ensures that each client meets the highest compliance standards, while minimizing their UI tax cost liability.  Walton helps employers create and manage portfolios of business incentives that reduce costs through obtaining tax credits, grants, and profit recovery opportunities under Work Opportunity Tax Credits (WOTC); Welfare to Work (WtW); and capital expenditure, workforce, and location-based incentive programs.  Integrating these service offerings will enable employers to take advantage of the full range of employment and unemployment cost controls, savings, and offsets available to businesses.

Barnett, founded in 1983 by Paul Barnett, is headquartered in Garden City, NY. Walton, founded in 1982 by CEO Fred Stiftel, is headquartered in New Jersey, with offices in Maryland, Florida, and California.

Having known Fred Stiftel, President of Walton Management for over 28 years, Paul Barnett, President of Barnett Associates is excited about this partnership. “Walton’s philosophy is the same as ours, customizing to individual client needs, considering their practices, consulting on and securing all possible savings, and most importantly serving with true dedication. In a climate which is compliance driven, this partnership expands Barnett’s current portfolio of employer services, ensuring federal, state and jurisdictional compliance, while continuing to save time & money for their clients.

“It is our distinct pleasure to join industry leader Barnett Associates to offer the full range of employee-related services and cost savings,” said Stiftel. “Now our customers will be able to maximize both their employment and unemployment savings and reduce their operational and employment-related costs to improve financial performance. This relationship brings together key components in the employee lifecycle. Barnett's proven leadership in unemployment cost control services will enable our clients to have access to a one-stop source of workforce tax management.”

About Barnett Associates

Since 1983, Barnett Associates has been widely recognized as one of the premier Unemployment Consulting firms in the country, serving many of the Fortune 500 in the areas of: SUI Tax Management, Claims Administration and Employment Verification. Barnett is the industry leader in identifying legitimate unemployment tax saving opportunities across the United States. Their “UI Practice” analyzes all facets of employment and its financial impact on the bottom-line tax cost. SUTA Dumping legislation and Sarbanes Oxley have created a challenging environment for companies to correctly report SUI taxes. Barnett ensures each client meets the highest compliance standards, while minimizing their UI tax cost liability. Barnett's website can be viewed at http://www.barnettassociates.com or call (516) 877-2860 for more information.


Hurricane-Related Tax Credits Expanded

Bush recently signed into law the "Gulf Opportunity (GO) Zone Credits". Along with the previously announced "Hurricane Katrina Emergency Relieve Act" (KETRA), these credits target businesses affected and rendered inoperable by Hurricanes Katrina, Rita, and Wilma. The updated legislation allows an employer to take an Employee Retention Tax Credit on ANY employee who remained on the payroll for the period the business was rendered inoperable as a result of the damage caused by Hurricane Katrina, Rita, or Wilma. The Credit can be taken on wages paid to employees while the store or location was closed and/or damaged during the period of August 28, 2005 through December 31, 2005. All Credits are based upon wages paid to an employee while the employee was not working as well as on employee's wages if the employee remained on the payroll but was transferred at a later date. The credit is 40 percent of the first $6,000 in wages paid to each eligible employee after August 28, 2005, and before January 1, 2006, by employers in the designated core disaster area, for the period the business is rendered inoperable as a result of damage caused by Hurricane Katrina. The reference dates for employers affected by Hurricane Rita and Hurricane Wilma, comparable to the August 28, 2005 date for employers affected by Hurricane Katrina, are September 23, 2005, and October 23, 2005, respectively.


California Grants Conditional Designation to 15 Year Enterprise Zones

California has given the conditional designation of 23 new 15-year enterprise zones. Most of the existing zones with impending expiration dates were also given conditional re-designation. Businesses located in enterprise zones are eligible for state tax reductions, abatements, and exceptions and other incentives aimed at encouraging worker hiring and stimulating economic development in distressed areas. The 23 zones must still complete some work, including an environmental impact report that will result in final approval sometime in October 2007. The newly designated zones will not be in use until the end of the year.


Katrina Tax Credits - WMS Seeks Employment Relief for Businesses

Congress recently passed a new law that creates many tax code changes to benefit Hurricane Katrina victims. The Katrina Emergency Tax Relief Act of 2005 applies to people and businesses affected by Hurricane Katrina and to those taxpayers helping victims of the disaster. The Internal Revenue Service currently is developing the taxpayer guidance required to implement the new law and WMS is ready to assist businesses with these guidelines.

Work Opportunity Tax Credit For Hurricane Katrina Employees - Ask WMS...

One specific area of relief is to employers hiring those affected by Hurricane Katrina based upon the Work Opportunity Tax Credit Program (WOTC). Typically, the Work Opportunity Tax Credit is available on an elective basis for employers hiring individuals from one or more of eight targeted groups. The provision of the Katrina Emergency Tax Relief Act of 2005 provides that a Hurricane Katrina employee is treated as a member of a targeted group for purposes of the WOTC, making it a ninth targeted group.

A Hurricane Katrina employee is: (1) an individual who on August 28, 2005, had a principal place of abode in the core disaster area and is hired during the two-year period beginning on such date for a position, the principal place of employment of which is located in the core disaster area; and (2) an individual who on August 28, 2005, had a principal place of abode in the core disaster area, who was displaced from such abode by reason of Hurricane Katrina and is hired during the period beginning on such date and ending on December 31, 2005 without regard to whether the new principal place of employment is in the core disaster area.

Furthermore, the standard WOTC certification requirement is waived for such individuals fitting the new Hurricane Katrina targeted group. In lieu of the certification requirement, an individual may provide to the employer reasonable evidence that the individual is a Hurricane Katrina employee. Ask your Walton Management Services, Inc. account representative to provide you with a form in order to document these new hires. Additionally, other standard WOTC requirements have been waived such as the denial of the credit with respect to wages of employees who had been previously employed by the employer, unless such employee was an employee of the employer on August 28, 2005, and and the 21-day expiration.

WMS assists companies with Employee Retention Credit for Employers Affected by Hurricane Katrina

An employer may be eligible for a credit of 40 percent of qualified wages (up to a maximum of $6000 in qualified wages per employee) paid to eligible employees, for which a credit has not already been taken under WOTC.

An eligible employer is any employer (1) that conducted an active trade or business on August 28, 2005, in the core disaster area and (2) with respect to which the trade or business described in (1) is inoperable on any day after August 28, 2005, and before January 1, 2006, as a result of damage sustained by reason of Hurricane Katrina. An eligible employer shall not include any trade or business for any taxable year if such trade or business employed an average of more than 200 employees on business days during the taxable year. The credit not allowed for large businesses; that is any business which employed an average of more than 200 employees on business days during the taxable year. An eligible employee is, with respect to an eligible employer, an employee whose principal place of employment on August 28, 2005, with such eligible employer was in a core disaster area. An employee may not be treated as an eligible employee for any period with respect to an employer if such employer is allowed a credit under section 51 with respect to the employee for the period.

Qualified wages are wages paid or incurred by an eligible employer with respect to an eligible employee on any day after August 28, 2005, and before January 1, 2006, during the period (1) beginning on the date on which the trade or business first became inoperable at the principal place of employment of the employee immediately before Hurricane Katrina, and (2) ending on the date on which such trade or business has resumed significant operations at such principal place of employment. Qualified wages include wages paid without regard to whether the employee performs no services, performs services at a different place of employment than such principal place of employment, or performs services at such principal place of employment before significant operations have resumed.

The credit is a part of the current year business credit under section 38(b) and therefore is subject to the tax liability limitations of section 38(c). Rules similar to sections 280C(a), 51(i)(1) and 52 apply to the credit.

CHARITABLE GIVING INCENTIVES - Temporary Suspension of Limitations on Charitable Contributions

In the case of a corporation, the deduction for qualified contributions is allowed up to the amount by which the corporation’s taxable income (as computed under section 170(b)(2)) exceeds the deduction for other charitable contributions. Contributions in excess of this amount are carried over to succeeding taxable years, subject to the limitations of section 170(d)(2).

Qualified contributions are cash contributions made during the period beginning on August 28, 2005, and ending on December 31, 2005, to a charitable organization described in section 170(b)(1)(A) (other than a supporting organization described in section 509(a)(3)). Contributions of noncash property, such as securities, are not qualified contributions. Under the provision, qualified contributions must be to an organization described in section 170(b)(1)(A); thus, contributions to, for example, a charitable remainder trust generally are not qualified contributions, unless the charitable remainder interest is paid in cash to an eligible charity during the applicable time period. In the case of a corporation, qualified contributions must be for relief efforts related to Hurricane Katrina. Corporate taxpayers must substantiate that the contribution is made for this purpose. A taxpayer must elect to have the contributions treated as qualified contributions.