Our WOTC.com integration helps employers take better advantage of the Work Opportunity Tax Credit (WOTC) when hiring new employees.
Here’s how it works:
Workstream now integrates with WOTC.com, the leading platform to manage all aspects of the WOTC process. WOTC.com makes it simple to submit the appropriate applications and forms, track qualified WOTC candidates, and process the reports and final forms needed to process and receive the tax credit.
With our integration, employers can now set up a smart screening step during the hiring process to automatically pre-select WOTC candidates when they apply. All you need to do is to set up a quiz stage specific to WOTC as the first stage in the worker application, where they will pre-qualify themselves by answering WOTC-related questions. These questions can also include other filters such as years of experience, active credentials, and availability, making it easy to find the applicants you’re looking for.
Workstream automatically scores the quiz and will progress applicants to the next stage in the hiring process if they qualify. If not, then your hiring manager can manually review them and decide whether to move them forward or not.
Finally, once an applicant is marked as “hired” in the system by the hiring manager, Workstream will automatically trigger the workflow of sending the offer letter and help you complete the necessary forms for the WOTC process, both for you and your new employee. With the WOTC.com integration, this process will help managers be certain that they will receive the tax credit as soon as possible.
Workstream is the simplest and most foolproof way to find, screen, hire, and onboard WOTC qualifying workers, and now our integration with WOTC.com makes the WOTC process simple.
What is WOTC?
The Work Opportunity Tax Credit (WOTC) is a federal tax credit available to employers who hire from certain pools of targeted groups. It’s an incentive to hire workers who may often be passed over during the hiring process. These groups include:
- Veterans
- Ex-Felons
- Supplemental Nutrition Assistance Program (SNAP) Recipients
- Supplemental Security Income (SSI) Recipients
- And more
While businesses should be looking to hire from these groups anyway, it’s a good move for the government to provide a monetary reason to do so as well. These employers can receive a WOTC tax credit amount that varies depending on the hired individual’s classification, ranging from $1200 to $9600 per worker.
There are some catches to the WOTC that employers should be aware of, none of which are very high bars that should scare anyone off:
- The credit is equal to a percentage of the employee’s wages.
- In general, as long as the individual works 400+ hours, the employer will receive the full credit available at the individual’s classification.
- Former employees cannot be rehired to quality for the tax credit.
- The credit can be claimed for a total of 2 years.
- Employers who haven’t taken the full credit due to tax liability limitations can carry back the credit 1 year, or forward 20 years.
For more information on WOTC, please head to the pages on the Department of Labor website and the IRS website.
To learn about Workstream's other integrations and intuitive features, check out our blog, or contact us to find out how we can help you.