You’ve heard that WOTC can supercharge profitability. Now learn how much it costs.
If you’re a business owner or decision maker, you understand that controlling costs is crucial for ensuring profits. And you’re likely well aware of the adage “Time is money.”
We understand why your first response after hearing about the transformative potential of the Work Opportunity Tax Credit (WOTC) might be, “How much does it cost?”
This blog answers that question in detail.
Time cost
Claiming WOTC effectively undoubtedly requires the investment of time. WOTC is a popular and good-intentioned federal employment tax credit program. As such, it includes rules, regulations, and processes that may require professional help to master.
That being said, some entrepreneurs take on the task of learning about and optimizing WOTC by themselves. Claiming WOTC this way includes:
- Consulting federal legislation to ensure compliance
- Calculating credit amounts accurately to protect against audits
- Managing all required paperwork, deadlines, and communications with state and federal agencies
- Building and implementing WOTC screening and monitoring tools
- Training team members in best practices to ensure high WOTC KPIs
- Continuously monitoring WOTC performance
Depending on the time you can dedicate to WOTC tasks, the volume at which you hire, other resources such as a capable accounting and/or HR staff willing to take on new endeavors, and your WOTC goals, claiming it without outside help may be the most cost-effective path forward.
The most time-efficient way to claim WOTC, however, will always be hiring our team of professionals. We have several decades of collective tax and tech expertise. You’ll benefit from everything we’ve learned through the process of helping hundreds of businesses claim over $650 million in employment tax credits like WOTC.
Monetary cost
Although none of the six steps to claiming WOTC necessarily cost money, in practice, most of them do. We’ll break down some of them here.
- Determining eligibility: To determine WOTC eligibility for new hires, you must have screening tools and processes in place. Screening must occur on or before the day on which a job offer is made. Since most recruiting, applying, and onboarding now happens via software applications, implementing WOTC screening costs the price of building, launching, and managing new digital tools.
- Obtaining certification: You cannot claim WOTC for eligible employees unless they are certified as such by the appropriate state workforce agency. Completing and filing the necessary paperwork and documentation for doing so only directly costs the price of postage or an internet connection. In reality, though, it often becomes a lengthy process requiring unexpected amounts of time and attention.
- Claiming tax credits: WOTC is a federal tax credit. As such, it lowers your annual federal business tax liability. In Maryland, it can also lower your state business tax liability. What’s more is that WOTC can be carried forward or backward across tax years. Most business owners consult professionals to ensure tax compliance. Not all accountants have the capacity or ability to include WOTC in their annual tax filing services. Some may offer it for an additional charge. Any way you cut it, claiming WOTC along with your annual tax filing involves variable monetary cost.
Our fees are 100% contingent
Answering the question, “How much does claiming WOTC cost?” is impossible to do in a general sense. The many factors explored in this blog directly affect the answer.
However, answering “How much does claiming the WOTC with Arvo cost?” is simple.
It costs nothing until and unless you generate profits with WOTC.
We have the experience and expertise to launch a highly-effective WOTC program for your business, no matter the size.
If you currently claim WOTC on your own or through another servicer, our tools and solutions can secure you 3-5x more credit.
At every step in the process, our dedicated support team is available to customize our offering to fit your available resources and crush your WOTC goals.
Stop wasting time and money. We’re here to make claiming WOTC simple.