To that I say: No, my friend…it’s an old tax acronym. One that was going away, but decided to move back home for the next five years; however, unlike adult children moving home, this is good news!
That’s right, your CPA firm who became your BFF through PPP, EIDL and ERTC has yet another APB: the WOTC.
But hang in there! This is not a comprehensive treatise on the Work Opportunity Tax Credit, but rather what you, the business owner needs-to-know, and none of the taxing tax talk. I promise.
The Work Opportunity Tax Credit (WOTC), widely considered an overlooked and underutilized credit, has recently been extended through 2025. Can the WOTC benefit your business? Just answer the following question:
If it’s determined you qualify for the WOTC (or may qualify in the future), great! You are employing those who consistently face barriers to employment. You are stimulating the economy and promoting diversity in the workplace!
Certifying and claiming the credit involves several steps, including:
Easy, right? It really should be, but if it seems like too much red tape, we can connect you with a 3rd party administrator to certify new hires and submit documentation to state agencies. There’s no excuse to ignore this credit and the 28-day certification deadline is impossible to achieve without a proper system in-place before onboarding. Let Withum help you claim the WOTC so you can focus on growing your business and helping others through diverse, open-minded employment practices.
Ok, one more acronym…TLDR: if you hire people, call us and we’ll help you implement a system (whether internal or via 3rd party) to ensure providing opportunities to members of vulnerable groups doesn’t result in lost opportunities by not claiming the WOTC.