Did you know that over $1 billion of tax credits are claimed under the Work Opportunity Tax Credit (WOTC) program every single year? That number is staggering, but it’s great to hear since the program encourages companies to hire people who can otherwise have challenges finding employment for various reasons. WOTC allows veterans, people who get public assistance, and people with disabilities, among others to secure employment while businesses earn valuable federal tax credits for hiring and retaining them. But what is most important for your business as you consider your WOTC best practices? In this article, we’re going to show you some golden rules when it comes to best practices for the Work Opportunity Tax Credit.
WOTC Best Practices
Here are just a few of the things to keep in mind:
1. Pre-screen all New Hires
Many opportunities for a WOTC are missed. That is because the screening process isn’t enforced or integrated during your job application or onboarding workflow. According to the WOTC guidelines, employees must be screened on or before their job offer date. Having your new hires complete their WOTC pre-screening ensures you meet the guidelines and never miss an opportunity.
2. It’s Worth the Time and Effort
Some companies adopt an attitude that things like the WOTC aren’t for them. That is simply because they think it’s a complicated or time-consuming process. Exploring your options and eligibility for the WOTC credit is absolutely worth it in every case. On average, nearly twenty percent (20%) of new hires are eligible for some sort of WOTC credit. There also isn’t a limit to how many people you can hire that would earn you a WOTC credit. And, with a reduction of federal income tax liability as much as $9,600 per person, it is definitely worth the time and effort.
Additionally, consider the fact that you can automate and streamline your WOTC process entirely. Of course, you can do that with a solution powered by Quentelle’s technology.
3. Don’t Rely on Paper Submissions
If you’re still relying on paper submissions for your WOTC, you’re deeply behind the curve and are increasing your chances of missed opportunities substantially. Paper forms are also risky because information can be missed during the submission process, and there’s only one copy. Additionally, you must mail all of your paperwork with a postmark that is on the day of your employee’s start date which can be inconvenient.
The Gold Standard as a Golden Rule
Here at Quentelle we’ll be so bold as to say that the final golden rule when it comes to WOTC best practices is to use our best-in-class ForeSite software platform. Don’t risk missing out on thousands in credits, and come to love our simple suite of robust, easy-to-use tools.
Our software is safe and simple. Schedule a demo today and let us show you the gold standard in WOTC software.