Is Your Company Taking Advantage of the Work Opportunity Tax Credit?
Many an HR department had cause to rejoice earlier this year when the IRS extended its deadline for submitting requests for the Work Opportunity Tax Credit, or WOTC, to April 30, 2015. A hefty federal tax credit of up to $9,600 per employee, it helps to incentivize the hiring of certain groups that face significant challenges to gaining employment. These include unemployed veterans, food stamp recipients and other individuals who increase workforce diversity (for a full list of groups that qualify, click here).
Turning our attention to companies and the clear-cut benefits of WOTC to employers, it pays to explore the issue of why an extension was even needed. As appealing as the tax credit is, the amount of research, labor and paperwork required can prove to be a burden on Human Resources. Certifying a new employee’s WOTC eligibility places an additional set of time and workflow constraints on HR departments that are oftentimes already stretched thin.
More and more, companies are finding tech solutions to administrative roadblocks like the one above. Management tools in the form of custom software are available to assist employers in determining tax credit eligibility quickly and efficiently. These apps free up a sizable chunk of the time and effort required and can be integrated into an existing talent management system. That means more time to hire qualified employees, file the right paperwork, and grow your business.