Do you ever check your couch for change? What if I told you there could be $9,600 in there? Would you look then?
It might sound crazy, but thousands of businesses are refusing to turn those cushions to search for lost moolah in the form of unclaimed Work Opportunity Tax Credit(s), or WOTC. The WOTC is a federal tax incentive program designed to motivate businesses to hire employees from certain target groups, including:
- Veterans
- TANF (Temporary Assistances for Needy Families) Recipients
- SNAP (food stamp) Recipients
- Designated Community Residents
- Vocational Rehabilitation Referrals
- Ex-Felons
- Supplemental Security Income Recipients
- Summer Youth Employees (living in Empowerment Zones)
- Qualified Long-Term Unemployment Recipients
The WOTC credit can be between $1,500 to $9,600 per employee depending on the target group and the amount of hours worked, which can add up to significant tax savings every year.
But keeping track of who’s eligible for the WOTC, getting the proper accounts set up with state authorities, and computing the total credit amount can be a big job, especially for small- to mid-sized firms. That’s where Dominion Payroll comes in.
Empowering Your Savings
Dominion Payroll will facilitate the submission of your employees WOTC application to the proper agency within 28 days of an employee’s hire, track the employees who are certified and compute the proper credits based on your certified employees hire date, WOTC qualification criteria, number of hours worked, and employee wages. At tax time, we will provide you with the documentation your tax department needs to complete the IRS form 5884 so you can elect to take the credit with the IRS. The best part? We take a set percentage of your savings on our end, meaning we only get paid if you do.
For more information on the WOTC and how Dominion Payroll can help administer it for your company, contact Mauri Whitehurst at mwhitehurst@dominionpayroll.com.