WOTC pays you back for filling open roles
Whether your manufacturing company builds with metals, plastics, glass, biologics, or something else, one thing remains true–you need human workers to get the job done.
Unfortunately, two problems may be working against you.
Enter the Work Opportunity Tax Credit (WOTC)–a federal employment tax program that can both broaden your talent pool and reward you for hiring certain job-seekers. We have helped several manufacturing companies create lasting change through this program.
Expand your applicant pool
The WOTC rewards employers for hiring and retaining job-seekers from certain disadvantaged target groups, including:
- Veterans
- Ex-felons
- Residents of economically distressed areas
- Recipients of certain forms of government assistance
- Certain seasonal employees
- and more
Businesses who take full advantage of WOTC design their recruiting strategy to include applicants from these categories. This practice financially rewards both the business and the employee, and may also help the business fill open roles by incentivizing them to search in often-overlooked places.
Get paid back for hiring
After WOTC-eligible employees are certified by the appropriate state workforce agency, they generate tax credits for their employer after working certain amounts of hours. The amount of credit any given WOTC employee can generate varies according to a handful of factors, but an average WOTC employee lowers their employer’s tax liability by $2150.
Depending on the volume at which your business hires, and the associated expenses of doing so, tax credits earned through WOTC employees can offset or eclipse the overall cost of recruitment and hiring.
Beyond this, reduced tax liabilities result in growth for your bottom line.
Strengthen your workforce
Although some employers may have bias against hiring WOTC-eligible employees, this should not discourage them from taking advantage of the program’s benefits. Research has shown that WOTC workers:
- Perform better than or equal to their peers
- Stay in their job as long or longer than non-WOTC employees
- Are less likely to leave their job in the first year than their peers
- Earn as much over time as their peers
- Progress through career ranks at the same pace as non-WOTC employees
- Are just as likely as non-WOTC employees to move to another job following their WOTC-eligible job (rather than unemployment)
Additionally, WOTC workers tend to come from diverse backgrounds, and bring diverse experiences to workforces. As a result, adding WOTC employees to your workforce can benefit DEI initiatives, and benefit your workplace culture in a myriad of ways–including driving innovation and growth, according to Harvard Business Review.
Let us handle the heavy lifting
We’ve helped hundreds of businesses claim over $650M in tax credits over the last decade.
The truth is, many manufacturing companies are entitled to the WOTC and don’t even know it. We’ve built tools and solutions that help businesses of all sizes claim the money they deserve. If you’re ready to expand and diversify your workforce, and get rewarded for doing it, partnering with us is the right choice. We make claiming tax credits simple.