The Work Opportunity Tax Credit strengthens workforces and profitability
Few industries work as hard or navigate as many challenges as restaurants.
High staff turnover rates, seasonal fluctuations in demand, and the ever-present need to control waste are just a few of the challenges successful restaurants manage, all while creating a pleasurable and stress-free experience for their diners.
That’s why more and more restaurants are turning to the Work Opportunity Tax Credit (WOTC) to build better, more profitable workforces.
Restaurant owners can’t control everything, but smart ones know that their industry demands they take advantage of every financial incentive available.
This blog explains why WOTC offers can’t-miss benefits to restaurants.
What is WOTC?
WOTC is a federal program designed to encourage employers to hire individuals from disadvantaged backgrounds, including veterans, ex-felons, long-term unemployed individuals, and more.
It offers tax credits to employers who hire eligible candidates from these target groups, providing a win-win scenario for both the business and its employees.
Save costs
Simply put, WOTC means cost savings for restaurants. After hiring workers from eligible groups, restaurants earn tax credits for the wages paid to these employees. The credits directly reduce the restaurant’s federal income tax liability, translating into tangible cost savings.
Additionally, WOTC offers an attractive incentive for restaurants to hire applicants they might otherwise overlook. This provides restaurants with access to a diverse talent pool, potentially uncovering hidden gems who bring unique skills and experiences to the table.
Meet seasonal needs
Restaurants often face fluctuations in staffing needs based on seasonal demand. WOTC can be a valuable resource during peak hiring periods, particularly when restaurants require additional staff to handle increased customer traffic. Hiring seasonal workers from targeted groups not only fills immediate staffing gaps but also creates opportunities for tax credits.
Strengthen your staff
Participating in the WOTC program allows restaurants to tap into a skilled labor pool. For instance, hiring veterans can be advantageous due to their discipline, leadership abilities, and problem-solving skills, which may require less extensive training compared to other candidates. A loyal and skilled workforce contributes to increased employee retention and boosts overall operational efficiency.
Give back to your community
By participating in the WOTC program, restaurants demonstrate their commitment to social impact and community support. By offering opportunities to individuals facing barriers to employment, restaurants can play a vital role in transforming lives and making a positive difference in their local communities.
Arvo makes it easy
WOTC helps restaurants save costs, strengthen their workforce, and help disadvantaged job-seekers.
If you’re ready to get started with WOTC, partnering with us is the right choice.
Our continuously-improving tools and solutions get 2-3X more than our competitors’. That’s because WOTC has been our speciality for the last decade, during which we’ve helped hundreds of deserving businesses claim nearly $700M.
Finally, our fees are 100% contingent, eliminating the possibility of risk for your business.
We understand how hard your restaurant works. Let us make your work more profitable with WOTC.