Work Opportunity Tax Credit (WOTC) and other hiring credits and incentives

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WOTC and other workforce programs can lower your tax liability, incentivize workplace diversity, and increase talent value and retention. The EY WOTC program is a highly automated, efficient and embedded process that can seamlessly fit into your existing hiring process to help capture WOTC credits.

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In a business environment where labor is in short supply and demand is greater than ever, recruiting and retaining a workforce continues to be a top priority. Has your company taken the steps needed to increase workforce diversity and expand sourcing to consider new pools of talent (e.g., disadvantaged veterans) while lowering your overall cost of recruitment?

The federal WOTC program provides federal tax incentives to employers that hire employees from various targeted groups who face barriers to employment. Employers can secure a tax credit benefit ranging from $2,400 to $9,600 for each eligible hire, depending upon the employee’s category of eligibility.

What EY professionals can do for you

We can help you unlock the advantages of WOTC. For many, the credit value from the WOTC and other hiring credit programs is an obvious benefit. What is often not immediately unveiled are the additional benefits realized from an integrated service offering.

EY understands the importance of the employee experience, and our goal is to help balance a screening process for employees that enhances the user experience, keeping employee satisfaction high while you realize the financial benefit.

Our processes and WOTC technology platforms leverage a combination of proactive and personal account support with a low-touch integration of data feeds to analyze, calculate and capture a complex tax credit — we aim to make it easy for you.

WOTC services

Not only can the WOTC program provide a significant positive financial impact to your company’s bottom line, but it can also helpfully impact the organization from a people perspective by encouraging an inclusive culture and supporting local communities.

Our technology-enabled process streamlines compliance requirements and provides documentation to substantiate credits in the event of an audit.

WOTC, the Affordable Care Act (ACA) and other EY Workforce Tax Services all depend on similar workforce data elements and process streams. Leveraging our existing WOTC services infrastructure, we can help you with a broad spectrum of workforce analytics, reporting and tax compliance needs.

Other hiring credits and services

In addition to WOTC, EY clients often benefit from additional federal and state tax credits — and these additional credits can generate significant financial advantages for your company. EY has a fully integrated team of more than 300 credits and incentives professionals who can help your organization identify, qualify, pursue and obtain a broad spectrum of tax credits available to your business.

Our integrated screening process provides bundled screening for other federal opportunities, such as the Federal Empowerment Zone (FedEZ), Indian Employment Credits (IEC) and Federal Disaster Zones. Additionally, EY professionals collaborate with tax and HR teams to determine which states may offer potentially available state hiring credits relevant to your business.

As legislation continues to present new opportunities, EY US is at the forefront of these new and ongoing developments. Our legislative and lobbying group, Washington Council Ernst & Young, is continuously monitoring the latest legislative activity and keeping you abreast of how policy changes may impact your business. Whether it is disaster-related tax credits or hiring retention credits, EY teams have the technical knowledge and experience to simplify the complexities and unveil more opportunities.

Talent Outreach Services (TOS)

TOS assists employers in taking a proactive approach to increasing Work Opportunity Tax Credits (WOTC) and meeting diversity and inclusiveness goals. As the labor market tightens, employers struggle with finding qualified applicants.

Our TOS professionals offer a way to supplement recruiting efforts by leveraging the candidate pools within community-based organizations (CBOs). Creating and expanding relationships with CBOs and hiring from their targeted populations allows employers to potentially reduce recruiting costs while enhancing the diversity of their workforce.

Our historical data has shown that 60% of all CBO-referred hires are WOTC eligible, with the largest CBO impact from veteran and vocational rehabilitation eligible hires.

Work Opportunity Tax Credit (WOTC)

For more than 22 years, our Work Opportunity Tax Credit (WOTC) processes have been assisting individuals who face barriers to employment and helping clients identify and capture available tax credits.

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