Category: Work Opportunity Tax Credits

Can the Same WOTC Tax Credits Cost 50% Less?

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

Continue reading “Can the Same WOTC Tax Credits Cost 50% Less?”

Work Opportunity Tax Credit (WOTC) Subscription Service

For years, vendor services for the Work Opportunity Tax Credit (WOTC) program has had very little innovation and a stagnant pricing approach. Clients typically pay either a contingency based or per certification fee for a vendor to manage its WOTC program.

However, Walton is offering something unique to the tax credit marketplace —  the WOTC program as a subscription service. This flexible offering, which allows employers the option of taking an entire WOTC program in-house (with up to a 50% reduction in fees) or pursuing a “hybrid” model, in which the client only handles a couple easy-to-use workflows in-house, are now options for our clients. While all businesses can benefit, companies who hire more than 10,000 people per year and who perform their WOTC screening online can see significant costs and savings benefits. This is a major change to the WOTC industry and something all employers should consider. Continue reading “Work Opportunity Tax Credit (WOTC) Subscription Service”

WOTC Extension Bill Passes Senate Finance Committee

The Senate Finance Committee overwhelmingly approved a tax extenders bill with a vote of 23-3. In order to enhance passage, only a few amendments were allowed. None affected a number of significant changes to certain tax credit programs in the original bill.

The bill reauthorizes the Work Opportunity Tax Credit (WOTC) program for a 2 year period: retroactively from January 1, 2015 through December 31, 2016. The VOW to Hire Heroes Act tax credits for hiring post 9/11 disabled and other veterans also were extended for the same period as were the Empowerment Zone designations, EZ tax credits, and Employment Tax Credit (EITC). Continue reading “WOTC Extension Bill Passes Senate Finance Committee”

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