The WOTC (Work Opportunity Tax Credit) is a lucrative tax incentives program for many businesses that hire employees who typically face barriers to employment, such as ex-felons or welfare recipients. Many businesses do not pursue the WOTC, because they are unaware that their employees may qualify.  However, due to extending the WOTC target groups in 2016, the program now has universal appeal.

Time and Cost vs. Value

In the past, the process for completing the WOTC application package was cumbersome and administratively challenging. However, now more than ever, it is easier for companies to apply due to these game-changing benefits:

• The qualified long-term unemployed target category is generic enough to apply to every industry. This WOTC target group isn’t based on receiving public assistance or living in certain areas, so this makes a material difference in the amount of people who qualify.
• The process for capturing the WOTC is advancing in technology and one of the most significant advances is e-signatures. The acceptance of e-signatures by state Department of Labor offices streamlines the process of acquiring applicants’ signatures and often times leads to 100% screening compliance for many businesses. This saves both time and resources from having to amass wet signatures and also helps businesses save money since there is no longer a need to mail in a physical form.
• Many WOTC service providers have the capability of screening employees online (web-based) either through an embedded link or through fully integrating with a company’s applicant tracking system (ATS), HRIS or on-boarding system. Web-based screening automates the process for both the employee and the employer, it also ensures the employee is being screened on or before their start date, which is in line with the program guidelines and it gives the time needed to submit forms within the 28-day deadline.

In addition to the federal credit, there are also a number of state point-of-hire credits. In order to take advantage of these credits, it is necessary to have a system in place for screening new employees. Once a screening process is implemented, necessary employee information is captured in real-time and companies can easily meet the time requirements of the WOTC and other point-of-hire incentives with no additional work or time on behalf of the business.

To begin screening for the WOTC and other incentives, it is recommended that you outsource with a WOTC tax incentives consultant with proven best practices for implementation. If you’re hiring more than 50 employees a year, it’s time to begin planning for this program.

The WOTC is a tax benefit that directly affects your bottom line – available money you deserve to capture and put back into your business to drive success.

For more information regarding what tax incentives your company qualifies for, check out your state here and download your complimentary, educational guide.