What is the Work Opportunity Tax Credit?
Work Opportunity Tax credit is a wage based federal incentive program designed to give back to employers for hiring prospective candidates who have had a harder path to employment. There are many target groups including but not limited to those who have been unemployed for specified periods of time, veterans, those who have been on food stamps or other government assistance programs, and residents of federally designated low income areas.
Who qualifies for WOTC?
There are numerous target groups that can qualify an employee (Additional requirements per category must be met):Temporary Assistance to Needy Families (TANF), Veterans, Ex-Felon, Person who lives within federally designated Empowerment Zone (EZ), or Rural Renewal County (RRC), Disabled Veteran, Summer Youth, Food Stamps (SNAP), Supplemental Security Income (SSI), Long Term Unemployed, Vocational Rehabilitation
Can WOTC be retroactive?
Unfortunately, no. This program is a new hire "incentive" program; employees must complete the tax credit questionnaire within the first 28 days of employment in order to generate a tax savings for the employer.
What makes a good fit for this program?
Any for-profit business in growth/hiring mode would benefit from screening employees for tax credits, but the those who find this program the most lucrative are businesses with constant hiring and turnover.
Is this a Federal or State credit?
This is a Federal program which is administered at the State level. We work with individual state workforce agencies to help capture these credits.
Are there any implementation fees to get started?
Absolutely not! We work solely on a contingent fee basis, and do the work up front. You only pay if we are successful in generating tax credits for your company. We bill once a year at tax time when the credits are delivered to your CPA.
What if my new hire does not want to participate in the form?
Employees are not required to complete their questionnaire. They will be listed as 'Not Screened' in your Activity Summary Reports.
Is WOTC the only program available?
No! There are a number of programs that dovetail with the WOTC program, both State and Federal. During our introductory appointment we will discuss the availability of other programs in your area and industry.
Is this a program my CPA would handle?
This program is truly an administrative function, and not a tax function. We partner with CPA firms across the country in order to provide these services as most do not handle the day to day work necessary to help clients successfully participate in this program. We are happy to connect with your CPA and discuss this and any other program you may be eligible for in order to determine the benefit to your company.