Work Opportunity Tax Credits (WOTC) Services
Leveraging technology to help pursue value
Does your company claim the Work Opportunity Tax Credit (WOTC), a federal tax credit designed to encourage businesses to hire individuals from certain targeted groups? As the WOTC can range between $2,400 and $9,600 for each qualified employee, the total potentially available WOTC can be substantial for many companies.
How we can help
How well is your tax department equipped to address the WOTC application, certification, and computation processes? Deloitte’s WOTC Services and our supporting Technology for WOTC, or T4WOTCTM, offer many advantages over traditional approaches, from obtaining job applicant information and monitoring compliance metrics, through computing the amount of available WOTC.
Deloitte’s WOTC services include leveraging technology, T4WOTCTM, to assist client efforts to:
- Address and improve WOTC related process, procedures, and compliance metrics.
- Streamline the WOTC information gathering and screening process for newly-hired individuals to assist clients in meeting the 28-day filing deadline for submission of the relevant WOTC forms with the appropriate SWA.
- Provide on-line access, 24/7, to internal WOTC related information and compliance metrics.
- Improve efficiency and corresponding security with respect to WOTC information through use of a web-based tool and process.
- Integrate WOTC information gathering in electronic new-hire on-boarding process.
- Provide a technology tool to support the appropriate WOTC calculation and related documentation for your organization.
- Screen applicants for WOTC qualification in 1 of 14 categories, including the often overlooked veteran target groups which can have higher maximum credit levels
Congress extends and expands WOTC
"Credits & Incentives talk with Deloitte" is a monthly column by Kevin Potter of Deloitte Tax LLP, featured in the Journal of Multistate Taxation and Incentives, a Thomson Reuters publication.
This edition discusses the extension of the WOTC program, available to employers hiring individuals from certain target groups, as a tool to reduce the ranks of unemployed.
The WOTC Program was created by the Small Business Job Protection Act of 1996 to facilitate access to jobs for American workers. WOTC was intended to be broadly applicable to employers regardless of size, geography, or industry and was designed to streamline the eligibility process of prior tax credit programs.
The WOTC federal income tax credit, ranging between $2,400 and $9,600 for each qualified newly hired employee, is available to employers for hiring individuals from certain target groups who have historically faced barriers to employment.
WOTC assists targeted individuals in their employment search process to become wage-earners on their way to economic independence. In 1997, P.L. 105-34 changed WOTC to a two-tiered credit based upon the number of hours an individual works.