It’s the time of year when the leaves are falling and the weather is changing. With many businesses preparing to staff up for the holiday season it’s a perfect time to start screening for the Work Opportunity Tax Credit (WOTC) or to optimize your process so you are getting all of your potential credits.
According to the United States Department of Labor (DOL) employers claim about $1 billion in tax credits each year under the WOTC program. There is no limit on the number of individuals an employer can hire to qualify to claim the tax credit.
So, what steps can you take to make sure your Q4 WOTC program delivers so you can rake in the credits this fall?
- If you aren’t screening, start screening. – This is the first step in the WOTC process and you have to be sure to time it right as you typically can’t go back to screen after the fact. The Form 8850 must be completed by the day the job offer is made.
- If you are screening make sure you are screening at 100%. – If you aren’t screening all individuals, then you could be missing out on valuable credits. We recommend that you integrate electronic screening as a seamless addition to your standard hiring procedures.
- Monitor eligibility rates to make sure you are screening effectively. – All WOTC screening is not created equal. There are several ways you can optimize your screening to help identify all potentially eligible individuals. One way is to provide a “not sure” answer option so you can better assess potential eligibility if there are any doubts.
- Make sure you are submitting certification requests on time. – It doesn’t matter how many people you screen and identify as eligible if you don’t meet the 28-day deadline to submit a certification request. We recommend you outsource this administrative task to a WOTC expert who is connected to the workforce agencies.
- Respond to support documentation requests. – Once requests are submitted, it’s critical that you provide any requested support documentation to help prove target group eligibility. We recommend you outsource this step, so your employees aren’t wasting time chasing paperwork.
- Track hours worked to maximize credit opportunity. – An employee must work at least 120 hours to qualify for a tax credit. It’s a best practice to track hours worked so you can monitor employees who are close to the minimum threshold and schedule accordingly so you don’t miss out on your valuable tax credits.
Contact us today to learn more about how we can streamline your WOTC screening in just a few weeks with technology and process expertise that helps make WOTC programs easy and effortless for both employers and employees. Get started with a better WOTC experience today so, you are set to rake in the credits this fall!