AdvaPay WOTC

an overview of the work opportunity tax credit program - the Advapay difference

What is the Work Opportunity Tax Credit Program?

The Work Opportunity Tax Credit (WOTC) is a Federal Tax Credit available to employers who hire and retain individuals and veterans with significant barriers to employment.

WOTC reduces an employer’s cost of doing business

  • Employers make the hiring decision.
  • There is no limit to the number of new hires who can qualify the employer for the tax credit.
  • WOTC can reduce an employer’s federal income tax liability by as much as $9,600 per employee hired.
  • Certain tax-exempt organizations can take advantage of WOTC by hiring eligible veterans and receiving a credit against the employer’s share of mandatory taxes (fica).

If you have a Federal Tax Liability, you should be taking advantage of the WOTC program

  • 20% of a Company’s New Hires will qualify for WOTC Credits **
  • $900 = the average credit per certified employee **
  • If you hire 100 people a year, you are missing out on $18,000 in tax credits!
  • Some stay a day, some stay long-term. ** Example based on hiring hourly staff with 100% turn over
  • WOTC Incentivizes workplace diversity & facilitates access to good jobs for workers
  • For every federal $1 spent on the WOTC program, $5 is saved on assistance programs spent by putting Americans to work

WOTC Target Groups

the details you want to know

How WOTC works:

An employee completes the WOTC screening questions.

If the individual is eligible based on the WOTC Target Group guidelines, the completed forms are submitted to the State in which they reside (SWA).

Once WOTC Certified by the SWA – the tax credit available to you depends upon the employee’s retention period (hours worked) and wages paid during their time of employment.

Tax credit amounts:

Non-Veteran retention periods and Tax Credit Amounts by Target Group
Non-Veteran retention periods and Tax Credit Amounts by Target Group

Quick Facts: Among Veterans, the total unemployment rate was 4.3% in September 2016. The unemployment rate has since dropped overall. As reported in the Employment Situation: Household Data for September 2017, the unemployment has increased for Women Veterans – Sept 2016 reported a 3.9% unemployment rate, which increased to 4.5% in Sept 2017.

WHY HIRE VETERANS? Tax credit aside….Veterans are disciplined team players that strengthen your company goals and success. Their skills, values and extensive training can enhance your organization’s productivity. Veterans are highly trained in career fields not just limited to Information Technology/Security, Finance, Logistics, Security, Healthcare, Administration and many more.

screening employees using EfficientWOTC

Step 1: Your New Hire is invited to the online WOTC questionnaire – right in the application or onboarding, if you utilize EfficientHire’s Onboarding

Step 2: Employee eSigns, only if they screen as Eligible – the IRS WOTC Forms 8850 & 9061 are completely and accurately generated with required data

Step 3: HR and/or Hiring Manager approves the WOTC forms.

Step 4: The EfficientWOTC Processing Team submits your approved and completed WOTC forms to the SWA – Done.

All IRS Forms are generated completely & accurately. No more confusing IRS Forms to complete manually!

Sample WOTC Forms – click to enlarge

State Workforce Agencies accept WOTC applications by mail, email, fax and other electronic uploads to their data systems – EfficientWOTC will:

  • Submit your applications in the manner each State requires
  • Monitor the progress of each WOTC application
  • Request supporting documentation for WOTC applications – should the State send a needs request
  • Appeal denied applications on your behalf

The Efficient Team has been working with SWA’s processing WOTC applications since 2010 & is the representative (Agent) for over 2,500 employers

the legal stuff required by each state

A Power of Attorney (POA) is necessary when submitting IRS Forms on your (the employer’s) behalf.

  • EfficientHire is required to gain a limited POA to submit the 8850/9061 IRS Forms as the representative or agent of an employer.
  • States will accept an equivalent POA to the very complex IRS POA Form 2848, since the criteria are met for a standard Power of Attorney.
  • Each State Workforce Agency must have the POA on file before EfficientHire (processor) may file WOTC applications to the State.
  • We send you everything you need to get this part out of the way. As always, the EfficientHire Team will walk you through every step of the process and answer any questions you may have!

how to streamline your new hire process while maximizing your corporate tax credit

EfficientHire’s intelligent WOTC screening

  • Accessible from anywhere, the New Hire questionnaire provides a secure and safe environment for completing the sensitive information on the WOTC forms.
  • The simplified plain English or Spanish WOTC questions help minimize unnecessary errors – cumbersome and complex IRS forms can lead to misunderstanding and frustrated new hires checking ‘no.’

EfficientHire’s intelligent WOTC screening

  • EfficientWOTC automatically calculates the maximum tax credit allowed based on your employee’s hours and wages.
  • Track earn-out status by employee: this means you will know what hours and wages have been calculated and count towards the maximum credit allowed. Some employers use this tool to gauge employee retention!
  • Real-time accountability (by location, organization or company) to capture the success of your WOTC Screening, Qualification Rate, and Certification.

Credit reports at your fingertips

  • Based on any outstanding WOTC applications pending with the SWA, we will show you a breakdown of your Potential WOTC Credits.
  • Complete transparency – you have 24/7 access to your Actual Credit Gain reports by Month and Year. Each report shows where credit is earned by company, location, employee and target group eligibility.
  • Our WOTC Credit Reports allow you to quickly and easily manage your WOTC Program.

what are you waiting for?

Let’s summarize…