The Work Opportunity Tax Credit (WOTC) is a federal tax credit program that provides incentives for employers to hire individuals from specific target groups who may face barriers to employment. While it’s not a legal requirement to include information about the WOTC program in an employee handbook, there are some considerations to keep in mind when deciding whether to include it:
Pros of Including WOTC Information in the Employee Handbook:
Transparency: Including information about the WOTC program in your employee handbook demonstrates transparency to your employees. It lets them know that your company is committed to diversity and inclusion and is aware of programs that can benefit certain individuals in the workforce.
Employee Awareness: Many employees may not be familiar with the WOTC program or its potential benefits. By including details in the employee handbook, you can increase awareness among your employees and potentially encourage candidates who qualify to participate in completing the WOTC survey.
Supportive Environment: Including information about WOTC can create a supportive environment for employees who may be eligible for the program. It shows that your company is aware of the challenges some individuals may face and is actively participating in programs that can help them succeed.
Scope and Relevance: Consider the scope of your employee handbook and whether including WOTC information aligns with the overall content. If your handbook primarily focuses on policies, procedures, and expectations, you might provide WOTC information through other channels, such as HR communications or training sessions.
Changes in Legislation: Tax credit programs like WOTC can be subject to changes in legislation and eligibility criteria. Including detailed information in the handbook might lead to confusion if the program details change, and the handbook isn’t updated promptly.
Separate Communication: If your company has a comprehensive benefits or compensation section in the handbook, you could briefly mention the existence of the WOTC program and direct employees to HR or a designated contact for more information.
Ultimately, whether you include WOTC information in the employee handbook depends on your company’s culture, the content and purpose of the handbook, and your communication strategy. If you decide not to include it in the handbook, consider alternative ways to communicate the information, such as through training sessions, internal communications, or your company’s intranet.
Remember that tax credit programs can vary by location and eligibility criteria, so consulting with your HR department or legal counsel to ensure accurate and up-to-date information is always advisable.