Open post
FCRA Privacy Law

What Do We Need to Understand About FCRA Privacy Law?

One way you can verify a potential candidate’s identity is with a background check. A background check reveals crucial information about the potential employee, including the candidate’s credit report.

A credit report will comprehensively depict a potential candidate’s credit history. Credit reports are useful indicators of financial standing, containing information on loans, debts, and mortgages.

Most of the time, credit reports requested by an HR department will reveal accurate information. However, there are times when the financial information on the report will be wrong. The inaccurate information can be damaging to a candidate or employee.

Luckily, the Fair Credit Reporting Act (FCRA) protects consumers from inaccurate information in their credit reports. By governing the information use and assembly of consumer reporting agencies (CRA), the FCRA promotes the accurate recording of credit information. As a result, consumers retain the right to dispute inaccurate information on credit reports.

However, what exactly is the FCRA? What rights do you have under this law? We answer these questions and more below. Learn everything you need to know about the Fair Credit Reporting Act.

What is the FCRA law?

The Fair Credit Reporting Act (FCRA) was the first law passed to govern how credit reporting agencies and credit furnishers use and publish credit report information. The act was passed in 1970 by congress in response to the growing credit report industry.

In its first iteration, the Fair Credit Reporting Act (FCRA) contained stipulations geared toward promoting the private and accurate release of credit information. Between 1996 and 2018, the Fair Credit Reporting Act (FCRA) included protection rights for specific populations, namely veterans and students with student loans.

FCRA law helps ensure that credit reporting remains transparent, accurate, and private only to parties that require credit information, like employment screening companies. For this reason, the law outlines several rights for consumers. More specifically, the Fair Credit Reporting Act contains consumers’ rights to credit information and for disputing inaccurate credit reports issued by furnishers or credit bureaus.

Besides consumer rights, also contained within the Fair Credit Reporting Act are the types of information credit bureaus can gather on a consumer. According to the Federal Trade Commission, a credit bureau or consumer reporting agency can collect only the following to assemble a consumer report:

  • Bill payment history
  • Loans
  • Outstanding credit card balances
  • Any debt
  • Addresses (present and former address)
  • A history of bankruptcy
  • Health data
  • Personal characteristics and lifestyle

The Fair Credit Reporting Act also stipulates who can access consumer reports and when credit bureaus or creditors can do this. Under the Fair Credit Reporting Act, employers can get a free credit report about a candidate for employment purposes.

What Are My Rights Under the FCRA?

The Fair Credit Reporting Act is a law that protects consumers. As a result, most of its provisions favor consumers whose information may be susceptible to exploitation or identity theft. Under the Fair Credit Reporting Act, consumers have the following rights:

The Right to One’s Credit Information

The law gives consumers the right to free access to their credit information. Access to information can occur in one of two ways. A consumer can either request it from a credit report bureau or do so after disputing an inaccurate report.

The Right to Know How Sensitive Information in a Credit Report is Being Used

In particular, consumers have the right to know whether lenders or creditors use any financial information to deny a loan application. Under FCRA law, consumers are also entitled to know whether or not any data in their credit reports is being invoked to deny employment or insurance.

The Right to Information Privacy Except in Situations Where the Information is Necessary

FCRA law makes credit reporting safer for consumers. The law achieves this by making credit reports confidential and guarding consumer information against theft or unlawful access by third parties.

Of course, there are exceptions. Under the Fair Credit Reporting Act, a credit reporting agency may release information in certain situations. The context wherein the publication of consumer credit information is lawful varies. These situations involve parties needing the information for a “legally permissible purpose” like credit, insurance, or employment.

The Right to Refuse Pre-Approved Procedures That Require a Credit Report

Sometimes, insurance companies or credit card companies will pre-approve consumers for their creditworthiness. Often, these pre-approval procedures require companies to look into credit reports. In such a situation, a consumer has the right to opt-out of such screening procedures under the Fair Credit Reporting Act.

Under the FCRA law, consumer credit data is private until consumers give written consent to a party to access credit reports. As a result, during pre-approval credit screening procedures, an individual can submit to the screening process or lawfully refuse it.

The Right to “Freeze” Credit Reports

Credit reports are a valuable source of information for insurance companies, employers, and credit agencies. However, sometimes, the information contained within the reports can compromise consumers.

Under federal law, consumers who do not want third parties to access their credit reports can place their records in a “security freeze.” A security freeze prevents third parties from accessing information in a consumer report. The only time the freeze can be lifted is when a consumer consents to access. Individuals can grant access to their consumer reports by giving consent and one-time pins that enable credit report access.

The Right to Dispute Incorrect Credit Scores

One of the primary obligations of the Fair Credit Reporting Act is the accurate reporting and collection of credit data. For this reason, consumers can dispute any inaccuracies in credit reporting. If the negative information prevents a consumer from acquiring credit or employment, a consumer can file a lawsuit against credit furnishers or credit reporting agencies. Consumers can file a lawsuit to recover damages resulting from disseminating harmful and inaccurate credit data.

Under the FCRA, a consumer can file a lawsuit within the statute of limitations set by the Federal Trade Commission. The statute of limitations is two years from the date of the inaccuracy’s discovery. The statute of limitations can increase to five years, depending on the circumstances.

What is a Violation of the FCRA?

Violations of the FCRA can take different forms. Some of the most common include inaccurate credit reporting, failure to handle disputes, negligence in consumer reporting, and using data for impermissible purposes.

A credit reporting agency can inaccurately report information in several ways. For example, a credit reporting agency might report an individual paying child support when that individual has no children. Also, a furnisher may be incorrect in reporting the time and date of a credit card transaction to credit inspection bureaus.

In such scenarios, the parties liable would be the furnisher and the CRAs. This is because credit reporting agencies and furnishers must ensure maximum accuracy in reporting credit information under 1681 e(b) of the FCRA law.

Another violation of the FCRA happens when CRAs fail to investigate disputes. When a consumer files a dispute for inaccurate data, a CRA must investigate the credit history to determine where an error exists. Besides conducting an investigation, a CRA must notify a consumer of the investigation’s findings. If a CRA does not do both, the CRA will directly violate 1681 of the FCRA.

Negligence is another way to violate the FCRA. CRAs or credit collection agencies can violate the FCRA if they are negligent in consumer reporting. CRAs must notify consumers of anything involving credit information collection, use, and publication. CRAs must also inform individuals of parties obtaining credit reports.

Lastly, another common violation of the FCRA is using consumer credit information for legally impermissible purposes. As mentioned earlier, data privacy is one of the provisions of the FCRA. A CRA can only release or publish credit information when a consumer gives consent or if the situation makes data publication “legally permissible.”

One example of a legally permissible purpose is when an employer performs background checks on a potential candidate. Another example of a permissible situation is when an insurance company asks for a credit report.

Contact Quentelle LLC for More Information

As a business looking to perform background checks on employees, the FCRA law is a federal law you need to be familiar with. By knowing the ins and outs of this consumer protection law, you can prevent liabilities arising from FCRA violations.

It’s a complex law that is easy to misunderstand. If you need more information about FCRA law and how it can affect your hiring processes, do not hesitate to reach out.

Get in touch with us at Quentelle if you have questions about the FCRA law and other laws that can affect your business. If you need an all-in-one HR platform that takes the guesswork out of your staffing processes, schedule your free demo.

Open post

Julia Esipova is promoted to Director of Accounting & Finance

We are pleased to announce the promotion of Julia Esipova to Director of Accounting & Finance. Under this new role, Julia will be responsible for the financial management of Walton Management Services, Inc. and Quentelle, LLC., respectively.

Julia has joined Quentelle, LLC over two years ago as the Controller. In that role, she implemented new internal systems, controls and procedures. Julia’s contributions have helped maximize ROI’s as well as operational cost efficiencies for the business. Prior to joining Quentelle, Julia held various roles in financial reporting, auditing, and client service. Julia graduated with a double major in Accounting and Finance from Brooklyn College, City University of New York. She is also licensed as a Certified Public Accountant in the state of New York.

Open post

Mike McConnell, Appointed as President of Quentelle and Walton

We are delighted to announce the promotion of Mike McConnell.  Mike will serve as President of Walton and Quentelle, as of today, July 14, 2022.  In this new and exciting role, Mike will assume executive leadership for both companies.  Mike joined the organization in 2018, where he led several critical projects that delivered operational and technical scalability to manage our unprecedented and rapid growth.  Most recently, Mike served as Chief Operating Officer for Quentelle.

“The future of our organization is bright!”, said Fred Stiftel, Chairman of the Board. “Mike’s education, emotional intelligence, proven experience and vast skillset make him uniquely qualified to thrive in this role and take our companies to a era of success.”

About Quentelle, LLC:

Headquartered in New Jersey, with staff nationally and worldwide, Quentelle is a business and artificial intelligence technology company, and the developers of ForeSite™, a data intelligence platform that allows third-party developers and their applications to deliver state-of-the-art access to information as part of their applications. Quentelle is the developer of VeriSafeJobs™, a nationally recognized Verification of Employment/Income SaaS application that works under the ForeSite™ platform.  Quentelle services Fortune 500 and mid-size entities that require greater insight into the needs of their employees, as well as outside entities and government agencies. For more information, visit

About Walton Management Services, Inc.:

For over forty years, Walton has been a leading provider of point-of-hire tax credits and incentives.  Today, Walton leverages the most advanced technology platform proven to automate and integrate tax credits as well as employment verification, powered by a single data source.  Our integrated solutions feature a best-in-class partner ecosystem, proven to deliver optimal savings for companies across all industries, with ease.  For more information, visit

Open post
Applicant Tracking System

3 Tips for Picking the Right Applicant Tracking System (ATS)

In many ways, the success of your business overall boils down to the people you have on your team. It’s safe to say that the right employee in the perfect position can make a palpable difference– but it’s also safe to say that the opposite is true. If you hire the wrong person for your team, the effects can be disastrous and lasting.

One of the best ways to streamline your hiring process and find the perfect people to join your team is by using the right applicant tracking system. Simply put, an applicant tracking system is a piece of software that allows you to screen resumes efficiently and easily rather than trying to manually review countless resumes by hand.

Let Talent Acquisition Software do the Heavy Lifting

If you’ve posted a job listing lately, you’ll notice that applications come flooding in. Some of them have read your posting, others haven’t– but yet you’re staring down the barrel of 567 resumes on the first day, and your task is to find the most qualified applicants– much like trying to find a  few needles in a haystack.

When you think of an applicant tracking system, think of it more as your ‘Talent Acquisition Software.’ You’re looking for those perfect candidates, and this is the tool that will help you find them without a ton of clerical work and wasted time.

So how do you know the perfect Applicant Tracking System for you? Follow these tips, and you’ll be in the clear.

1. Know Your Needs and Work Backward

When you’re looking for the perfect recruiting software, it can be tempting to look at solutions that have a lot of features, bells, and whistles. Remember though: think of your needs first, and then choose the best talent acquisition software based on how well it can handle exactly what your hiring process will require.

2. Talk to the People Who Do Your Hiring

In our experience, you should absolutely include your hiring managers in the search for your talent acquisition platform. You’d be surprised how many higher-ups within companies choose their talent acquisition software without involving the actual people who do the hiring. You want to involve your entire talent acquisition team because they will have the boots-on-the-ground experience when it comes to your actual hiring process.

3. Keep Compliance in Mind

With an applicant tracking system, be sure that it is 100% current and compliant with the way that it works. Security is also a huge factor. When you fail to verify compliance, the sad fact is the consequences will fall on you and could result in fines and tons of red tape and clerical work. This is especially true when trying to capture WOTC (work opportunity tax credit) information, which has a direct financial impact on your business.

Quentelle is the Leader in Applicant Tracking Systems

No matter what you’re using to hire great talent, the last thing you want to be doing is managing multiple job boards and dealing with job seekers who aren’t a fit for the position.

Here at Quentelle, we are the leader in HR software and recruiting solutions. We’d love to show you a demo of how we can provide easy access to data-driven insights that will help you maximize and retain your workforce.

Our software is smart and simple. Schedule a demo today by filling out a form, or giving us a call.

Open post
Fair Credit Reporting Act

What Are FCRA Data Privacy Laws?

We’ve had an unprecedented last couple of years, and the overall state of the average consumer’s credit is different in many ways than it has ever been before. Now more than ever, when it comes to data and privacy, it’s important that your business is current on the laws and regulations on how you can collect, access, use, and share any data (from both clients and employees) as it pertains to credit reporting. Are you educated and prepared for the next year? Let’s dive into what you need to know about the Fair Credit Reporting Act (FRCA) and data privacy laws. Remember that this isn’t legal advice, but general guidelines to help you navigate any pitfalls that might land you in a state or federal court.

What is the Fair Credit Reporting Act?

Simply put, the Fair Credit Reporting Act (often abbreviated FCRA) is a federal law that was put in place to protect the accuracy and privacy of people’s information when it comes to their credit scores. It was put in place by the Federal Trade Commission back in 1970 and is more important now than ever.

These laws specifically regulate the way that a consumer reporting agency or credit bureau is able to use the information they use in your consumer credit reports. It limits what and how they can collect, access, use, and share the information.

In addition, the FCRA also grants consumers access to their credit history. Every 12 months, Federal law states that every consumer has a right to get a free copy of their credit report. This is to allow people to see any negative information that may have been placed on their credit file without their knowledge. From there, they can take action and dispute any inaccurate information with the various credit bureaus.

What Should You Focus on as a Business?

You and anyone on your human resources staff need to know how important the FCRA is, how strictly it is enforced, and what the legal ramifications are if you don’t follow the laws.

One of the most important aspects of this law is consumer consent. You can’t just pull someone’s credit report without their permission, and that permission must be in the form of written consent. These consent forms have very specific formatting and language that need to be included to be considered compliant.

Additionally, you can’t access anyone’s consumer credit information unless they’re directly related to your company, such as an employee, volunteer, or someone you’re considering as a potential employee.

Something that most companies don’t realize is that the FCRA isn’t just for getting a potential or existing customer’s credit report– it’s also directly connected to any formal background checks. If you follow the guidelines and perform a background check on someone (with their consent), such a request impacts what you have to disclose to that person. For example, if you are thinking of not hiring someone because of something you find on their background check, you have to send them an “adverse action notice” before you make the final decision. The applicant then has time to respond with a reply or reasons they disputed information on the report. If the applicant responds and you still choose not to hire them, you have to send a second adverse action notice letting them know what you decided.

Quentelle Can Help

Do you still have questions about how the FTCA may affect your business? Here at Qunetelle, we serve a growing number of clients and partners just like you. Our turnkey suite of proven solutions is ready for you to give it a test drive.

Our software is smart and simple. Schedule a demo today by filling out a form, or giving us a call.

Open post
Maximize UI Tax Benefits For Your Business

How To Maximize UI Tax Benefits for Your Business

As a business owner, it’s important to understand your income tax liability when it comes to unemployment compensation. When you have a better understanding of things like unemployment insurance and how it can affect your business income tax liability and your employees.

What is Unemployment Insurance (UI)?

Unemployment insurance has been around for quite some time– since 1935, in fact. It came about during the Great Depression, and was a pillar of helping the unemployed during this time recover. Of course, as time has passed, different rules and regulations have been added to the original, but the basic premise has remained unchanged.

Unemployment insurance is basically a “reserve” that is comprised of anywhere between 3% – 7% of an employee’s gross wages. If for whatever reason that fails, the Federal Government steps in. They lend money to guarantee that an unemployed worker will receive pay. All businesses are required to pay unemployment insurance.

Many small businesses don’t think they need to pay for unemployment insurance, but if you have employees, you’re required to pay into the Federal Unemployment Insurance Act (FUTA) and State Unemployment Insurance (SUI).

So how can you offset this cost, and maximize tax benefits for your business?

Let the Work Opportunity Tax Credit Work for You

The work opportunity tax credit is a Federal tax credit that is available to companies like yours if you hire individuals from specific, targeted groups. The people in these groups often face challenges when it comes to getting jobs, so these tax credits are granted to companies to give them the incentive to hire people from these groups, giving them a shot at gainful employment.

Some of the people that you can hire from these target groups are ex-felons, qualified veterans, people receiving long-term family assistance, or a vocational rehabilitation referral (just to name a few).

By hiring people from these target groups, you can not only give them a chance to contribute to their society through their vocation, but you also have tax credit available to you.

By maximizing your use of the work opportunity tax credit, you can help to offset the costs that may arise from unemployment insurance.

When you work to take advantage of the work opportunity tax credit as much as possible, you can try to balance the amount of SUI and FUTA taxes you have to pay quarterly.

Quentelle Can Help Maximize Your Tax Benefits

Whether you’re dealing with the intricacies of unemployment insurance, the specifics of the work opportunity tax credit, or anything else regarding getting the maximum tax benefits, Quentelle can help.

Our software suite guarantees results that are optimal and effortless. We use pre-screening to determine a candidate’s eligibility, we handle all of the necessary forms through e-sign, and help our clients realize their maximum tax credit potential.

Our software is smart and simple, and we’d love to show you the savings we can help you achieve. Schedule a demo today by filling out a form, or giving us a call.

Open post
guide to hr analytics platforms

The Beginner’s Guide to HR Analytics Platforms

The purpose and function of a company’s Human Resources department has changed greatly over the years. Nowadays, high-performing HR teams must be able to collect and analyze data, then use it effectively to mitigate risks and move the company forward. The importance of having a solid HR function often gets overlooked within a company. HR teams must understand how analytics platforms work and how they can empower your business decisions.

What exactly is HR Analytics?

HR Analytics is a process in which data mining and business analytics are used to interpret employment-related trends. This process is often referred to as talent analytics or workforce analytics.

There are two main purposes. The first is to provide insights and the second is to identify key data. Providing insights consists of giving information to those within the company so that they can effectively manage their employees. The second aspect is to identify data that the organization needs to capture and use models to predict ways that this can be done.

Why You Should Use HR Analytics Platforms

In the past, many human resource decisions were often based on experience, discernment, and instincts. However, this is subject to human error and inaccuracies, increasing risk and missed opportunities for companies as well as employees.

Today, thanks to advanced platform technology, companies can rely on algorithms that outline hard facts and historical trend analysis eliminating the potential to overlook patterns and discrepancies. These powerful analytics improve company growth and reveal opportunities. Furthermore, HR Analytics platforms can detect an imbalance where one department is taking on more burdens than other departments.

Ways to Use Analytics Platforms

There are various ways that you can use HR Analytics platforms in your organization. Some of the key data collected includes:

  • Time to recruit to hire
  • Resignation rate
  • Revenue per FTE
  • Employee engagement

Having these measurable data points can help to improve your business performance and growth. HR Analytic platforms can also help in the following areas:

  • Health and safety
  • Recruitment
  • Talent gaps
  • Employee retention
  • Sales performance

These are all crucial to every business and need to be taken into account when making decisions and changes. Additional considerations include low data interpretation skills and poor quality of the information collected. It is important to have the right HR Analytics platforms in place so you can overcome these challenges head-on.

Quentelle Offers Complimentary HR Analytics and Metrics for Your Business

Quentelle’s advanced data platform helps move your business forward. Our platform helps you retain your workforce and maximize your processes. Our data is multi-dimensional and is managed by our cutting-edge technology. We provide you with useful insights that can help you make empowered business decisions.

Contact Quentelle online or call us at 855-565-5515 to discuss your options and get started.

Open post
: WOTC Legislation

WOTC Legislation 2021: Everything You Need to Know

The Work Opportunity Tax Credit (WOTC) is a federal government tax credit that was established to help reduce the employment barriers faced by certain groups.  This includes select veterans as well as individuals receiving government assistance such as SNAP (Supplemental Nutritional Assistance Program) and TANF (Temporary Assistance to Needy Families), to name a few. There is new proposed WOTC legislation introduced in 2021, that enhances the program.  We’ll go over what this means for employers and discuss how you take advantage of these enhancements.

Quentelle’s premier team of employer tax credit experts are here to help you decode the legalese of these new WOTC legislation updates, and find a solution to maximize those benefits for your business.

What is WOTC?

WOTC was first introduced to Congress in 1996 as the Welfare-to-Work Tax Credit Act. The legislation was created with bipartisan support and signed into law by President Clinton on August 22, 1996. It passed both chambers of Congress without a dissenting vote. Since then, there have been several changes made to this credit including an extension in 2005.

Who is Eligible for WOTC?

There are currently nine different target groups that are eligible to participate in this program. The list includes:

  • Qualified veterans
  • Designated Community Residents (DCR)
  • Vocational rehabilitation referrals
  • Ex-felons
  • Summer youth workers (over 16 years old, but under 18)
  • SSI beneficiaries
  • SNAP recipients 
  • TANF recipients 
  • Qualified long-term unemployment recipients

Businesses can receive a tax credit ranging between $1,500 and $9,600 for each certified target group member hired. The maximum amount of WOTC money that an employer can receive is limited by a wage cap based on the target group they belong to.  For instance, a SNAP recipient can earn an employer a maximum credit of $2,400, while a disabled veteran that is also unemployed for 6+ months can earn $9,600 in tax credits for the same employer.

The Work Opportunity Tax Credit Program has undergone several modifications since its inception. However, this time it may be changing significantly.

WOTC Legislation 2021: What’s New?

The House of Representatives Ways and Means Committee approved tax provisions for the Build Back Better Act on September 15th, 2021. The approved provision proposes several changes to the tax code and includes significant enhancements to WOTC effective from the date of enactment of the Build Back Better Act, through December 31st, 2022.  

The following is a summary of the proposed changes:

  • Credit Amount Increase – increases the credit per certified employee (for most target groups) from $2,400 credit to $10,000
  • WOTC; a 2-Year Credit – $5,000 per certified employee, for years 1 and 2, for a maximum credit of $10,000
  • Re-hires Eligible –  through a temporary waiver of the rehire exemption 
  • No Change for Certified Summer Youth – these hires remains the same as in the current program

While these proposed changes are still far from becoming law and may be temporary in nature, it could be the equivalent of putting WOTC on steroids.  Next steps will involve intense negotiations with the Senate for a final bill. 

If you’re interested in a provider who can help you maximize these benefits, look no further than Quentelle.

Quentelle’s HR Solutions Make WOTC Easier

Quentelle delivers a suite of HR solutions powered by an award-winning technology platform. Our WOTC service bundles include screening for WOTC, verification of employment and income, administration of unemployment insurance (UI) claims, and UI Tax consulting services. We are here to help you understand your hiring requirements under the new WOTC legislation in 2021. Contact us today to learn more about what Quentelle can do for you.

Open post
man using magnifying glass to calculate finances

What Are Point of Hire Tax Credits?

Tax credits are dispensed when a business does something valuable within the community. Giving to charity and providing child care, for example, earn tax credits. So too, can hiring. This is called the Point-of-Hire (POH) tax credit. Is your business claiming your full savings?

A business’ role as an employer is among its most important functions to the nation. Certainly, manufacturing shoes or selling groceries is important, but employing the populace is essential to the flow of industry. Each person on your team is one more person who is employed vs. unemployed. One more person receiving a reliable income and contributing their skills to the greater economy. Each time your company hires a new employee, you benefit the economy through that employment.

Employment is the path out of many situations of economic disadvantage and dependency. This is especially true in vulnerable and struggling population groups. From elevating youth into a career to employing veterans and the disabled, both federal and state governments offer business tax credits based on the opportunities offered to target-group employees. Accessing these credits requires each company to choose a Point of Hire tax credit solution to screen, verify, apply, and claim the credit each year.

What is the Point of Hire Tax Credit?

The Point of Hire tax credit is a type of tax credit given to businesses for hiring employees in disadvantaged situations. Targeted groups include veterans, SNAP and SSI recipients, and youth from Empowerment Zones, among others who benefit acutely from access to employment and career opportunities. POH tax credits are usually offered at the state level. Point of Hire tax credit is based on and paired with the WOTC (Work Opportunity Tax Credit) provided by the federal government.

The POH tax credit is available to all businesses, rewarding opportunities provided during standard hiring procedures. The credit was designed to promote diverse hiring and encourage businesses to hire from disadvantaged populations who have the most to gain from employment opportunities.

How to Get Your Company’s POH Tax Credits

The first step of claiming your POH tax credits is pre-screening for qualification. Your business must qualify, and credits only apply to new hires within specific target groups. It’s important to carefully screen your POH applications to ensure that each claim is qualified for the tax credit and how much. You must file your pre-screening application within 28 days.

POH and WOTC Target Groups

Which newly hired employees qualify your company for Point of Hire tax credits? The target groups are usually identified by their access to financial services due to poverty-line existence. This may be from a medical condition, legal status, or disadvantageous financial circumstances. The POH and WOTC programs are designed to promote these disadvantaged groups by providing a tax credit to companies that help employ these groups and improve their prospects through career advancement.

  • IV-A & TANF Recipients
    • Temporary assistance for needy families
  • Qualified Veterans
  • Ex-Felons
  • Vocational Rehabilitation Referrals
    • A person with physical or mental disabilities is referred to the employer while in a rehabilitative service plan.
  • Summer Youth Employees
    • 16-18-year-old youths from Empowerment Zones, enterprise communities, and renewal communities
    • Employed between May 1 and Sept 15
  • SSI Recipients
  • Long Term Family Assistance Recipient
  • Qualified Long-Term Unemployment Recipient
    • Unemployed for longer than 27 weeks

POH vs. WOTC: What’s the Difference?

  • WOTC:
    • Work Opportunity Tax Credit is a Federal Program
  • POH: 
    • Point of Hire tax credits are a type of tax credit offered by federal and state governments.

One of the biggest questions in Point of Hire programs is the relation to WOTC. When you look up either acronym, the other appears. They seem to be synonymous. Is Point of Hire the same as Work Opportunity Tax Credits? The answer is yes, and no.

WOTC is a point-of-hire program provided by the federal government to all eligible companies who employ certain financially at-risk groups. It is also an inspiring policy that many states took up individually. State programs that piggyback this and offer additional incentives are usually referred to simply as Point of Hire instead of using the federal Work Opportunity designator.

WOTC is the federal policy inspiration for most POH state programs. However, linguistically Point of Hire is the category, and WOTC is a point of hire style tax credit.

What is Required for POH Tax Credits

To claim your Point of Hire tax credit, you’ll first need a certificate of eligibility. To get this, you send a Form 8850 pre-screening application. If you get a certificate back, you can claim the credit with a Form 5884 or 3800. The most time-consuming part of the process is pre-screening to ensure that your circumstances qualify by the POH tax credit. The IRS also recommends that qualified tax-exempt employers not change their calculations in the assumption that the credit will be approved.

Pre-Screen to Determine Your POH Eligibility

The first and very important step is to confirm that your recent hire meets eligibility requirements. A close investigation may be necessary to determine all related factors and qualifiers. This includes very data-sensitive details about each new hire’s financial and personal status, information that must be respected and closely guarded while you have it, and may not be legal to discuss during job interviews for reasons outlined by the EEOC.

Fill and Submit Form 8850 to Request an Eligibility Certificate

Once you have determined internally that a hire is POH eligible, complete and file Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit within 28 days of the first day of work, you will need to identify and outline each of the qualifying factors to expect a certificate of POH tax credit approval.

Claim the POH Tax Credit with Form 588-C

After receiving a certificate,  file a tax-exemption claim against the employer’s Social Security tax with a Form 5884-C or possibly a 3800 based on your circumstances.

Quentelle’s Point of Hire Tax Credit Solutions

Is your business missing out on potential POH tax credit exemptions? Capable employees are often included in target groups in the process of overcoming any disadvantages without mentioning the process to coworkers. However, certain fact-checking can provide you with greater resources to benefit more new hires and better career development programs for tax purposes.

The Quentelle team is here to help you through every step of the POH tax exemption process. Our POH tax exemption solutions include pre-screening, form submission, certificate acquisition precise tax exemption claim filing. To schedule a demo or a consultation with our business tax credit experts, contact Quentelle today.

Posts navigation

1 2
Scroll to top