The WOTC Process
We pride ourselves on simplifying the complex at Arvo. When it comes to claiming the Work Opportunity Tax Credit (WOTC), it is no different. Let’s look at the process.
We make it easy as possible to maximize and claim your Work Opportunity Tax Credit (WOTC) using four simple steps:
1. Screen your applicants
This is important to determine who qualifies as a WOTC candidate. We have an electronic survey that can plug into your current hiring process to make this easy.
2. Certify eligible employees
Those screened as WOTC eligible from Step 1 need to be certified by the State Workforce Agency. We do this on your behalf – giving your state the information they need to certify the employee. In some states, it may take several months to certify the candidates – but it’s worth the wait!
3. Track credits earned
Your WOTC-eligible employees earn a credit based on hours worked, and wages earned. If they are certified by the state, they still need to work at least 120 hours before they generate a credit. Because of this, we’ll work with you to get regular payroll feeds that show hours worked and wages earned. We will report back to you on a regular basis the amount of the credit that has been earned (this is usually important for tax planning purposes).
4. Claim your tax credit with the IRS
Before filing your tax return each year, we’ll complete the necessary tax form for your CPA. This credit will flow through to the owners to use on their personal returns.