The federal Work Opportunity Tax Credit (WOTC) program provides incentives for employers to hire eligible candidates who have historically struggled to obtain employment. By identifying categories of targeted employee groups, the WOTC program encourages workplace diversity and allows access to jobs for workers who often encounter barriers to employment by providing tax credits for organizations that hire these individuals. Both the work opportunity tax credit and the empowerment zone employment credit offer potential for increasing your tax savings.
Cadient Talent helps your hiring managers identify qualified applicants who are also WOTC-eligible. We do this by integrating seamlessly with vendors who facilitate the automated completion of the Form 8850, the required government survey that identifies applicants who would qualify your organization for a federal tax credit if hired by your organization. This pre-screening form must be completed and signed by the applicant and the employer before it is submitted to the state workforce agency to certify an applicant as a member of the identified targeted groups. Once a job candidate is pre-screened to determine whether the individual is potentially WOTC-eligible, this status is updated on the Cadient Talent Hiring Manager Console.
This tax credit incentive helps these targeted employees earn a steady income and make their way to becoming financially self-sufficient and contributing taxpayers. The hiring organization is rewarded by helping people find much-needed employment while also diversifying its workforce with qualified employees who increase tax savings for your business. With the recent addition of “Qualified Long-Term Unemployment Recipient” to the list of targeted categories, these potentially WOTC-eligible individuals may be more likely to appreciate the job opportunity and become productive longer-term employees, which also benefits the company.
Many states also offer tax credits for hiring individuals based on similar criteria as federal WOTC eligibility. Due to the complexities of these programs, it is important to work with professionals who specialize in tax credit screening and can help you identify potentially eligible candidates and reduce your taxes.
Utilizing an Applicant Tracking System (ATS) like Cadient's that integrates with WOTC pre-screening services allows employers to identify potential candidates who may qualify for the WOTC easily. This technology can save time and resources since employers no longer need to manually search through applicant pools to uncover qualified candidates. The ATS can take care of this process in mere minutes.
Additionally, using a WOTC pre-screening ATS increases your ability to comply with tax credits and regulations. Finally, managing audits and reports becomes easier with all pertinent information stored in a single digital location, so you don't have to worry about juggling multiple documents or data sources.
For more information about our integrations with providers of WOTC pre-screening services, please click here to schedule a consultation.
For more information on maximizing your tax credit potential, see this article by our CEO Jim Buchanan. This article and more helpful information about ways to make your hiring process more productive can be found in the Resources section of our website.