Most human resources departments use a checklist when hiring new employees. Lists are so important, whether they are printed on paper or managed electronically by a paperless onboarding system. Lists help us to consistently and fairly walk new workers through a litany of important tasks.
Unfortunately, most employers have missed something valuable on their hiring checklist and it’s costing money every year.
Is it missing from yours?
It’s the Work Opportunity Tax Credit (or WOTC).
Adding WOTC screening forms to your hiring checklist is one of the simplest and easiest ways to reduce your company’s federal income tax burden. But timing is important. To qualify, your employees must provide information on (or before) the day of their job offer.
This simple task helps employers earn thousands of dollars in tax reductions per eligible hire. Most already hire eligible workers and could hire even more with targeted recruiting. (For example, intentionally reaching out to hire unemployed veterans.)
Depending on why they qualify, employers can earn between $2,400 and $9,600 in tax credit for each qualified employee. Since most employers (without knowing) already hire eligible workers, a hiring checklist without WOTC means lost tax benefits and overpaid taxes.
What’s the bottom line?
Businesses that add WOTC to their hiring checklist keep more money at tax time.