For decades now, the Work Opportunity Tax Credit (WOTC) has brought big money back to companies. In the olden days, AKA 90’s, WOTC was frankly a pain to deal with. Paper forms, discrepancies between federal and local documentation requirements, the hassle of just identifying and certifying applicants meant that smart companies chose to completely outsource the entire process. Times have changed. Scrunchies, JNCO jeans, and painful WOTC practices are out. So why are you still using the same WOTC payment structure?
WOTC Subscription vs. Contingency Based or Per Certification Fees
Chances are, your company’s WOTC service is either contingency based or on a per certification program. This made sense in the past. Walton offers our clients a subscription-based payment structure to take much of the WOTC process in-house, saving up to 50% on WOTC fees. Who do we recommend the WOTC subscription service for? While many businesses can benefit, companies who hire more than 10,000 people per year and who perform their WOTC screening online see the most significant cost savings.
Isn’t WOTC a lot of work for HR?
The answer is: not as much anymore. WOTC eligibility can usually be determined without human involvement. If your company is using and Applicant Tracking System (ATS) like Taleo or iCIMS, 100% of 8850 Forms can be signed electronically. Of these forms, 87% may be submitted immediately without additional documentation. Furthermore, in 89% of those circumstances, the form will not be touched by a human, so there will be no labor cost involved. Consequently, in 77% of the circumstances, a WOTC certification may be obtained without any labor involved in the processing.
Help When You Need It
Of course, the remaining 23% of WOTC certifications represent a lot of money as well. With NetCentives, Walton’s secure cloud-based business intelligence system, it is easy to pinpoint the remaining 23% and process their forms. The hardest part of any subscription service is managing internal staff to ensure that everything is being done in a timely fashion. That’s why, in addition to a purely subscription-based service, Walton offers a hybrid model of WOTC management where we take over when additional processing or verification is required. Simply put, you handle the easy tasks and we take care of the hard stuff.
What Do You Get With the WOTC Subscription Service?
The best tax credit technology in the industry — Our secure, cloud-based tax credit system NetCentives provides tracking, compliance reporting, and ensures that your company has real-time WOTC Program management capabilities with full HRIS systems integrations. Additionally, NetCentives provides instantaneous, always-on data so you never have to wait for a report again. You can view missing documents and sort locations by compliance to immediately pinpoint opportunities.
Technology has changed. It is time to offer new pricing structures for WOTC services. Innovation, automation, cloud computing, and government integration have made it possible to offer WOTC on a subscription service basis, with some variable cost related to a company’s outsourcing of certain smaller processes of the WOTC service. Our goal at Walton is to increase overall credits and reduce the cost of the program. Want to see if the WOTC subscription service can save your company 50% on WOTC tax credits?