Claim more credits and improve your bottom line by partnering with a tax reporting solution.
Recent data from the United States Staffing Association found that the average staffing company qualifies for $75,000 in Work Opportunity Tax Credits (WOTC). But to get these credits, screening and compliance activities are often done in contrasting systems with manual processes, making identifying all credits for which an applicant is eligible difficult for HR leaders.
As a result, a large number of staffing companies are greatly overpaying on their taxes each year, and missing the credits their new hires are eligible for.
An employer can save approximately $2,400 annually per eligible new adult hire, and additional credits for having hired employees that fit into 10 main target groups, according to the United States Department of Labor. Most of these WOTC target groups are worth $2,400 for each eligible employee, while others can qualify employers for even more, like the Veterans Target Group, which is worth up to $9,600 for each eligible employee, according to ADP.
Staffing industry software provider Avionté partners with ADP to help its clients get the most from WOTC through their ADP SmartCompliance platform. ADP’s cloud-based program helps users simplify employment tax compliance by eliminating paperwork from the WOTC process, and ensuring every new hire is properly screened. ADP is currently helping over 50 Avionté clients file for Work Opportunity Tax Credits and collect on hundreds of thousands of dollars in unclaimed taxes.
Is your company taking advantage of the WOTC program today? There is no better time than now. This month, the IRS announced their approval of retro WOTC, which grants employers “transitional relief” for Work Opportunity Tax Credits they are entitled to receive for any eligible employee that was hired during the recent WOTC hiatus, and is giving employers until April 29, 2015 to catch up.
Avionté companies with 750 new hires are seeing WOTC savings of $130k to $140k per year and companies with 5,000 new hires are seeing WOTC savings of almost $700k with the ADP SmartCompliance platform.
For more information about the Avionté/ADP partnership and retro WOTC, contact Avionte.
This article was originally posted on the Avionté blog here: http://www.avionte.com/2015/03/02/now-is-the-time-to-capitalize-on-your-wotc-tax-credits/.