The Work Opportunity Tax Credit (WOTC) was enacted to encourage the hiring of employees who fall into specific target groups, support business growth and help drive the economy. While companies of all sizes have benefited from this program by hiring new talent and capturing valuable credits, the process for screening, verification and document submission can be complicated and labor intensive. However, many businesses are increasingly looking to programs like WOTC to help offset rises in the cost of doing business.
It's a dilemma that can leave even experienced financial executives struggling to find the most efficient way to maximize WOTC credits.
Capturing WOTC credits can be challenging, particularly for companies with employees spread across multiple geographies and tax jurisdictions. Many may lack the bandwidth or expertise to efficiently manage WOTC complexities and capture the greatest value of credits possible. Without efficient screening, verification and documentation, companies with eligible employees may be unable to mobilize quickly enough to realize these savings.
The WOTC program has the potential to help significantly reduce a company's overall tax liability both through credit value and volume. Nationally, the average WOTC is valued at approximately $1,550 per employee. The following industry best practices may help ensure companies don't miss out on thousands of dollars in potential credits:
Screen All Applicants. While many companies...