WOTC (“watt-see”) stands for Work Opportunity Tax Credit. WOTC is a federal program that rewards private sector employers for hiring employees from specific target groups who have consistently faced significant barrier to employment, including Veterans. For most target groups, the WOTC can be as much as $2,400 per eligible employee. There is no limit to the number of new hires who can qualify for the credit per employer. To be eligible, employees must be new hires and may not be relatives or dependents of the owners, nor can the employees themselves be majority owners/owners of the business. Tax credits are calculated based on the target group to which the employee belongs and the number of hours the employee works during the first year of wages. Hiring Tax Credit Services will calculate the tax credits you are due and present you with a statement to provide to your CPA prior to your annual business tax filing deadline. To qualify for these tax credits, a new hire must be certified by the state workforce agency as a member of at least one of the target groups. Hiring Tax Credit Services assumes this process for your business by facilitating the completion of the necessary paperwork and submitting it to the state agency within the strict deadlines of the law. Currently, legislation is pending for the continuance of WOTC credits for the majority of the target groups. In the meantime, we will continue to submit paperwork for all target groups to the proper agencies so that all possible credits may be obtained when additional target groups are reactivated. (The federal government has historically renewed WOTC programs retroactively.)
How Hiring Tax Credit Services Works
- Confidential Screening of Employees – Our staff will provide you with simple paperwork to add to your normal hiring process. Hiring Tax Credit Services will provide envelopes for confidential submission directly to us via a designated manager/employee at your office, eliminating the need for employees to openly disclose to you any sensitive financial/economic situations.
- Obtain Government Certification – Our knowledgeable staff will review your employees’ preliminary paperwork to determine if they are members of any of the active target groups. Eligible forms will then be forwarded to the appropriate agency for processing. If additional information is needed, our professional staff will contact the employee on your behalf.
- Report Progress – All activity for your business will be recorded and tracked on an ongoing basis. Annually, you will receive a thorough report along with a completed Form 5884. Forward this form to your CPA to claim any credits due on your business tax return.
Hiring Tax Credit Services receives no payment unless credits are earned. Our staff includes certified professionals in payroll, accounting, and human resources. We work directly with the state agencies to make sure you are receiving any and all credits available.
Call us to get started today at 317-885-7600.