Frequently Asked Questions
What is a tax credit?
A dollar-for-dollar reduction in the tax liability of a corporation.
What is WOTC?
The Work Opportunity Tax Credit is a federal tax incentive available to employers that hire from nine target categories that typically face significant barriers to employment. The main goal of the WOTC is to enable these groups to become economically self sufficient and become tax-payers themselves and to reward employers for reducing the costs of social programs.
We are a tax consulting company that focuses solely on obtaining the WOTC benefits for eligible employers nationwide. We know WOTC.
I don't know which of my new employees is eligible. Can you help?
WOTC Solutions can assist you with the screening process by providing you with two simple forms that you can incorporate into your hiring paperwork. The WOTC is very underutilized and you probably already have hired eligible employees and you don't even know it. Let us help you identify them.
Can the WOTC be used against my payroll taxes?
No. The WOTC can be used against any federal income taxes owed.
Can't I do this myself?
You could do it yourself, but most of our clients do not have the time or resources to manage the entire process. Identifying, verifying, and certifying can take up quite a bit of your time and if your paperwork is not correct you can be denied and lose this benefit.
What if I don't owe any federal taxes this year?
The Work Opportunity Tax Credit, like many other credits, is good for one year retroactively or twenty years forward.
Do family members that work for me qualify for the WOTC?
No. Also, any employee that has previously worked for you and is then re-hired is not eligible.
How long does the qualified employee have to work for me to get the full credit of $2,400.00?
Your credit is worth a tax savings to you when the qualified employee works between 120 and 400 hours. We will calculate the value of your credit based upon hours worked and wages earned within that time period. We will create the necessary IRS documentation and provide you with everything you need in order to claim your credit!
How much does it cost?
WOTC Solutions charges you a small percentage of the credit's value that you've earned. We charge nothing until we have done the necessary verification, certification and calculation for your business and we offer a substantial discount to businesses with multiple WOTC-eligible employees.
How can WOTC Solutions reduce my labor costs?
By hiring from the WOTC target groups and taking advantage of this tax break for your business you can reduce your hourly rate of pay drastically. Send us an email on our contact page and we will send you our labor savings calculator.
Are there any deadlines involved?
Yes. That is the primary reason most busy employers are not able to take advantage of this specific tax incentive. You must have your application for certification, prepared, completed, correct and submitted to the appropriate agency 28 days after the hire date of the eligible employee.