There are significant tax incentives for employers to attract, hire, and retain individuals in specific untapped markets. To support these initiatives, the government sponsors the Work Opportunity Tax Credit (“WOTC”) – an employment tax credit to incentivize hiring individuals with certain barriers to employment.
Check out our latest episode of Raising the HR Bar highlighting the benefits of hiring veterans, disabled veterans, and individuals with criminal records. Employers who hire individuals in these target groups are eligible to earn a tax credit between $1,200 and $9,600 per employee. The amount of the credit depends on the target group of the new employee and the number of hours worked for the business. For example, if an employee works at least 120 hours, the employer may claim a tax credit equal to 25% of that employee’s first year wages, up to the maximum tax credit. A business that hires a disabled veteran who has been unemployed for at least 6 months may receive up to $9,600 in tax credits.
To maximize the tax credits our clients receive, MBA partners with HIREtech, a national tax credit company. HIREtech is fully integrated with MBA’s technology platform, along with our Applicant Tracking System, JazzHR. The process is simple and streamlined. When a new hire is completing their electronic new hire paperwork, survey questions help determine whether the new hire is in a WOTC target group. By selecting “yes” to certain questions, HIREtech automatically sends the required forms to the applicable state agencies to begin the process of obtaining tax credits for the employer. Importantly, because of MBA’s partnership with HIREtech, our clients do not have to interact with any state agency to obtain these credits nor are they charged any upfront costs or setup fees. HIREtech only charges a percentage of the total tax credit if one is received.
Providing opportunities to individuals with barriers to employment is mutually beneficial. Employers may be overlooking qualified talent in untapped markets. By focusing your recruiting efforts on veterans, disabled veterans, and individuals with criminal records, employers will benefit from valuable workers and financial incentives under the WOTC program.
For more information about MBA’s partnership with HIREtech and obtaining tax credits, contact a member of our Client Services team at firstname.lastname@example.org or 888.622.6460.
To discuss how businesses can strategically access untapped markets, the applicable laws for each target group, and additional benefits of providing employment opportunities for these individuals, contact an HR Consultant at HR@mbahro.com.
To view the Webinar in it’s entirety click here.