The Work Opportunity Tax Credit (WOTC)
WOTC Services
Qualifying your company for WOTC
Every year billions of dollars in Work Opportunity Tax Credits (WOTC) go unclaimed due to the complexities and time required to apply and manage the process of obtaining them. Your company's tax credits could average around $6,000 per year for each qualifying employee.
KUHLER's knowledge, experience and state of the art technology enable us to obtain the maximum benefits allowed for our clients. Our services are priced on the basis of actual tax credits received with a guarantee that our fees will be less than the benefits you receive.
KUHLER trains your front line HR staff responsible for hiring. We provide the necessary government forms and show your staff how to ensure that job applicants complete the forms properly. Original completed forms should be mailed to us within one week of the first day of work as failure to file within 28 days will deny certification. We check eligibility, enter the data into our system and forward the forms to the appropriate state office. The state will issue a certification based on the employee's qualifications and return the certification notice to us.
When it comes to helping employers realize their true tax credit potential, KUHLER is pioneering and progressive. We started providing premier tax credit services in 1978, when we helped companies process new hires through the Targeted Jobs Tax Credit (TJTC) Program. In 1996, we assisted the IRS and the US Department of Labor in successfully developing the federal Work Opportunity Tax Credit (WOTC) Program.
KUHLER customizes its services to yield maximum tax credits, while making minimal demands on employers and presenting them with significant savings on hiring costs. We accomplish this through a strong client focus, deep corporate resources, and an unwavering commitment to support employers' tax credit-related needs.
- Client satisfaction is our primary objective
- Tax credit maximization is our ultimate goal
- Provide state-of-the-art technology and flexible management methods
- Protect client confidentiality
Each year, hiring tax credits go unclaimed, even though companies add workers daily from the target groups designated by the WOTC Program. KUHLER oversees hiring and pre-employment screening services that ensure businesses fully capture their eligible WOTC credits. These can range from one-time credits of up to $2,400 to two-year credits of up to $9,000 per qualified worker.
The KUHLER approach to WOTC is a simple, three part process. Earning tax credits becomes turn key for your business because we handle the details.
1. Insert the KUHLER Employee Tax Credit Survey into your employees' new-hire packets.
2. Have new employees complete the Tax Credit Survey as part of their new hire paperwork.
3. The employee seals their survey in a pre-stamped and addressed privacy envelope provided by us, allowing HR to simply drop it into the mail, or call our WOTC dept to have our consultants complete the paperwork with you.
- Research each employee's eligibility potential
- Secure required support documentation
- Manage correspondence with multiple government agencies in each jurisdiction
- Secure certificates of eligibility
- Deliver status reports and feedback
- Calculate tax credits generated
- Report tax credit information to you and your accountants/cpa's
The Work Opportunity Tax Credit (WOTC) has been the cornerstone hiring-related tax credit in the U.S. for nearly 20 years. It is a federal income tax credit applied against a company's federal income tax liability. The financial benefit to an employer is up to $9,000 for every qualified new hire—typically representing 25% to 45% of a company's new hires—depending on the industry.
- To promote the hiring of individuals who qualify as a member of a target group
- To provide a federal tax credit to employers who hire these individuals
One of the keys to a successful WOTC program is implementing an efficient applicant-screening system for the hiring credit. The KUHLER-designed screening process increases applicant compliance and qualification, minimizes disruption to the current hiring processes, and maximizes financial benefits. And since the tax-credit screening process is required to occur either "on-or-before" the day a job offer is extended—per IRS regulations—immediate processing is critical.
The KUHLER credit capture technology typically results in a great financial benefit to our clients. KUHLER clients often receive three to five times the credits secured by their previous consultants. This is, in part, because KUHLER not only captures the WOTC credit, but also secures dozens of other government incentive programs available at the Federal, state, and local levels that are often overlooked.
And as the Federal government continues to introduce programs to stimulate the economy, there will be new hiring-related tax credit programs soon going into effect. KUHLER screening systems capture the new eligibility requirements so clients can benefit from recently-launched programs as soon as possible.
WOTC Focus
First, the basics. This is how the Work Opportunity Tax Credit is described by the Department of Labor:
"The Work Opportunity Tax Credit (WOTC) is a Federal tax credit incentive that Congress provides to private-sector businesses for hiring individuals from twelve target groups who have consistently faced significant barriers to employment.
The main objective of this program is to enable the targeted employees to gradually move from economic dependency into self-sufficiency as they earn a steady income and become contributing taxpayers, while the participating employers are compensated by being able to reduce their federal income tax liability."
As a corporation/business owner, you can gain a direct tax benefit by hiring individuals from WOTC's twelve target groups. Each eligible hire can provide up to $9,000 in tax savings, depending on which qualifying criteria are met. KUHLER can provide expert guidance on these eligibility requirements and manage the entire multi-step credits recovery process for you.
Most tax credit products are time consuming and difficult to administer. When it comes to WOTC, Kuhler's employee screening methods eliminate up to 86% of the paperwork, while targeting credit-eligible applicants early in the hiring process. KUHLER offers several processing options that can integrate with current hiring practices. This, in turn, can transform your Human Resource departments into a profit center.
KUHLER uses one short form to initially screen job applicants or new hires and provides all necessary forms for the new hire to sign. The process takes two minutes per applicant and multiple applicants can be screened at the same time. Again, KUHLER works on a contingency fee basis. There is no financial risk to our clients.
