Work Opportunity Tax Credit
Enacted in 1977 as the Targeted Job Tax Credit (PL 95-30), The Work Opportunity Tax Credit (WOTC) is a federal tax credit available to employers who hire individuals from specific target groups who have consistently faced significant barriers to employment. Any business can earn tax credits by hiring individuals who fit one of the program’s target groups such as veterans, disabled persons and persons receiving government assistance.
How WOTC helps your business
Employee applicants are screened to see if they qualify. If they do, employers can earn up to $9,600 in federal tax credits per hired employee. WOTC income tax credits can be applied quarterly and annually against federal income tax liability and unused credits can be carried forward 20 years or carried back one year. U.S. employers claim about $1 billion in tax credits each year utilizing the WOTC program.
WOTC stimulates business
and community growth...
The Work Opportunity Tax Credit can help improve your bottom line as a business, but it can also play an important role in improving life in the communities in which you operate your business.
Employers participating in WOTC help to ensure that everyone in America is given a fair chance for employment opportunities. By according the opportunity to work, employers make a significant contribution to creating a positive environment in communities while reducing their income tax liability.
...and First Capitol makes getting WOTC credits easier than you think.
Our Call Center allows job candidates to directly call in and participate in the screening process. Our Call Center results in a pre-qualification success rate of 20%, higher than the national average. Our Tax Credit Specialists are trained to make sure that any and all questions that apply to the candidate are answered with accuracy. All of the information obtained from our call center is noted by our Tax Credit Specialists and stored in our secure online database.
Tax Credit Specialists
Answering the questions during the screening process correctly can be difficult. Our Tax Credit Specialists provide clear guidance and ask the right questions to obtain accurate and complete information to determine if a job candidate is qualified for credits. We use voice to e-signature technology to create a seamless process for submitting the right information required by State Workforce Agencies.
Using the employment periods in your payroll information, we can provide you with total figures of missed opportunities and projected certifications. Screening using your payroll data does more than just ensure that more of your employees will receive WOTC certification. It also ensures that every employee systematically goes through the same onboarding process, creating a more efficient process.
Our Tax Credit Specialists will work with you to complete applications for WOTC certifications to submit to the appropriate State Workforce Agency. They will follow-up with the state agency until notified that certification has been provided. We'll prepare the annual IRS Form 5584 and will assist you if the IRS audits the WOTC certifications.
Clear and Easy Accounting
We invoice annually after the preparation of IRS Form 5884 and you have received certification of your tax credits. This allows you to use the WOTC credits to pay the fee at the same time, which makes for clean and easy accounting.