Solutions / Work Opportunity Tax Credit

Maximize Hiring Credits

The Work Opportunity Tax Credit (WOTC) has been the cornerstone hiring-related tax credit in the U.S. for approximately 20 years. It is a Federal income tax credit applied against a company's income tax liability. The financial benefit to an employer is up to $9,000 for every qualified new hire—typically representing 9-22% of a company's new hires—depending on the industry.

The WOTC program is one of the best-designed government incentives based on national standardization and financial benefit, and serves two purposes:

  • 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 this lucrative hiring credit. CCG’s well-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—our sound process is critical.

Beyond our process, our more encompassing credit capture technology—and higher level of expertise—result in a great financial benefit to our clients. CCG clients often see 3 to 5 times the credits secured by their previous consultants. This is, in part, because CCG not only captures the WOTC credit, but secures dozens of other government incentive programs available at the Federal, state, and local levels that are often overlooked by companies that manage this program internally or use an outside consultant.

And as the Federal government continues to introduce programs to stimulate the economy, there will be new hiring-related tax credit programs that will go into effect. Our screening systems are set up to easily and efficiently add the screening requirements so clients can benefit from both existing and newly introduced programs.

The WOTC credit is very important. However, there are many other hiring incentives that are equally—or even more—lucrative than the WOTC program.

To learn more about the WOTC program and the other hiring-related incentives, please contact us.