The Work Opportunity Tax Credit (WOTC) is a federal tax credit available to employers who hire individuals from specific target groups. Any business can earn tax credits by hiring individuals who fit one of the program’s target groups such as veterans, disabled persons, and persons receiving government assistance. Employers can earn anywhere from $1,200 to $9,600 per credit.
If your organization is not taking advantage of a WOTC program, you may want to reconsider. There are a number of ways to increase the number of certifications you can receive.
Perhaps one of the biggest differentiators for obtaining more credits is the use of payroll screening. Payroll screening is a method that can maximize the number of WOTC credits your organization can receive. Using payroll screening, all new hires are theoretically accounted for and screened through the WOTC program. In the event that they aren’t screened, steps can be taken to ensure that moving forward processes are put in place for making sure new hires are screened.
Here’s how to get your payroll screening process up and running:
Obtain monthly payroll records for all locations across your organization
Scan the payroll to identify all new hires on a monthly basis
Create a system to identify the new hires and have them successfully complete the WOTC screening process
Educate management on how to ensure that all new hires go through the screening process
Employers can further increase their WOTC certifications by including the use of a Call Center with their payroll screening program. Once their payroll information is screened, employees are instructed to contact a Call Center as part of the onboarding portion of the hiring process. From there, Call Center specialists can walk each employee through the WOTC screening process to ensure the questions are all answered accurately.
Often, employees will opt out of completing the WOTC screening survey or they elect to not disclose the necessary information, whether because of a language barrier, poor user experience, or timing. With a Cell Center, however, employees can be walked through the WOTC questionnaire. Any question that would apply to an employee will be answered 100% correctly.
Employers can make the process even more efficient if they incorporate a solution like TaxAdvantage. Integrating the application process into the solution can allow for a seamless process for WOTC pre-screening, employee onboarding, and Call Center screening. In addition, all employee applications and onboarding documents can be stored securely within the platform. With roughly 70% of state workforce agencies (SWA) accepting electronic WOTC submissions, an automated tax credit solution like TaxAdvantage can make it easier for employers to send the necessary information to the appropriate SWA.
With payroll screening, a call center, and an all-in-one solution, employers can expect to see a five-fold increase in their WOTC certifications. If you aren’t participating in WOTC program, act now and start saving. With this trifecta of WOTC services, you’re guaranteed high returns through certifications.
Tax credits are a great way for organizations to increase their bottom-line. If you’re interested in learning about WOTC, the ERC, or a different tax credit, contact us to see how we can help your organization start earning.