WOTC – The Work Opportunity Tax Credit
Earn some green for hiring an employee!
The Work Opportunity Tax Credit (WOTC) is a Federal tax credit available to employers for hiring individuals from certain target groups who have consistently faced significant barriers to employment. Employers can hire eligible employees from the following target groups for WOTC.
Employers can hire eligible employees from the following target groups for WOTC:
• Unemployed Veterans (including disabled veterans)
• Temporary Assistance for Needy • Families (TANF) Recipients
• Food Stamp (SNAP) Recipients
• Designated Community Residents (living in Empowerment Zones or • Rural Renewal Counties)
• Vocational Rehabilitation Referred Individuals
• Supplemental Security Income Recipients
• Summer Youth Employees (living in Empowerment Zones)
HOW DOES EFFICIENT WOTC SCREENING & PROCESSING HELP YOU ACHIEVE MAXIMUM CREDITS?
The WOTC Processing module ensures your candidates and hires are screened 100% of the time. Completely integrated into the application and/or on-boarding process, every candidate and employee will complete the WOTC questionnaire. We automatically determine eligibility for each candidate eliminating paperwork for ineligible candidates and generating the appropriate logic based questions for eligible candidates. Our processing team picks up the process after the paperwork is approved according to your workflow. Paperwork is submitted on your behalf to the appropriate state. Through the use of real time dashboards and reports see the progress of each submission from start to finish. You supply the wages and hours – we do the rest. Use our reports generator to track all submissions and eligible employees from start to finish. Upload hours and earnings through our interactive reports module. At the end of your year we will generate a credits report that you can use to use to file your taxes.
EARN UP TO:
$2,400 – for each new adult hire
$9,000 – for each new long-term family assistance recipient hired over a two-year period
$9,600 – for each new disabled veteran hire unemployed for at least 6 months
* All new employees must work a minimum of 120 to 400 hours in order for an employer to be eligible to claim the tax credit. The amount claimed by an employer depends on the number of hours of employment and generally the credit is 25% of qualified first-year wages for those employed at least 120 hours but fewer than 400 hours and 40% for those employed 400 hours or more.
* Employers hiring a larger number of employees eligible under WOTC can directly save thousands of dollars as a result of tax incentives.
* Indirect benefits include substantial business potential and growth from community gains and individual self-sufficiency.
7 EASY STEPS TO EARN CREDITS:
• Employee completes interactive online interview.
• Efficient WOTC logic determines eligibility.
• If eligible, then employee signs documents.
• Efficient WOTC submits to State.
• Efficient WOTC follows up and tracks outstanding items ensuring maximum credits.
• Using your payroll data, Efficient • WOTC tracks and reports credits.
• Efficient WOTC provides year end report to use when filing taxes.
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