Did you know that you could increase your revenue this year by simply utilizing the Work Opportunity Tax Credit (WOTC)? That’s right! Many employers have an average of 15% of new employees who qualify but don’t know it.
If you’re not aware, the Work Opportunity Tax Credit is designed to encourage employers to hire individuals who qualify as members of target groups, by offering a federal tax credit incentive of up to $9,600. WOTC target groups include veterans, persons living in designated communities, families receiving TANF or food stamp benefits and more.
Some companies find the process of obtaining their WOTC a little daunting and time-consuming. It can be. Federal and State legislation change annually, it can be hard to know which of your employees qualify and deadlines for filing are strict.
But we’re here for you. We’ve gathered a few tips from our friends at CMS and resources to help ensure you qualify for your maximum tax credit this year.
Include WOTC Forms (8850 and 9061) As a Part of Your On-Boarding Process.
Give new hires the “paperwork” along with their W-4 and I-9 and any other documents you use. Be sure to give forms to all employees to avoid any potential discrimination issues.
Submit Your WOTC Paperwork On Time.
Whether you submit to the State Workforce Agency online or in the mail, be sure to do so within 28 days of the employee’s start date.
Request a DD214 from Veterans.
If you are on-boarding any veterans, be sure to request a copy of their DD214. This will save time if the State Workforce Agency needs to request a copy from you.
Track Hours and Wages.
Track the employee’s hours and wages in your payroll program, or on a spreadsheet. The value of your credits is based on this information. Employees must work a minimum of 120 hours to be eligible.
Use an Administration Service.
Leverage the knowledge and experience of an agency who has been helping companies administrate their WOTC since 1997. Get help screening all your new hires, staying in compliance, and filing on time so that you can earn your maximum tax credits. CLICK HERE to learn more.
Got Compliance Concerns?
Reporting is a critical piece of your HR responsibilities and getting it wrong can expose you to costly fines, penalties, and even litigation. Now that we’ve begun 2017, what are some of the changes that might impact your business? It’s time to find out.
Join Sage for a FREE webinar on January 31st, 2017 at 2pm. Reporting on Your Critical HR Data for Compliance
At registration, mention “Blytheco” as your Business Partner.