WOTC lowers hiring costs and boosts long-term profits for retailers
The Work Opportunity Tax Credit (WOTC) program is designed to benefit both employers and employees. By understanding and leveraging the WOTC, retail stores can significantly boost their bottom line while simultaneously making a positive impact on their communities.
Financial benefits
WOTC offers substantial financial incentives to employers who hire individuals from targeted groups, including veterans, recipients of government assistance, and certain disabled individuals. Employers of WOTC-certified workers can claim a maximum of $1,200 to $9,600 in tax credits per employee, depending on the employee’s basis for certification and hours worked.
Wider talent pools
WOTC can expand talent pools for retail stores. By hiring individuals from underrepresented groups, retailers can tap into a diverse range of skills and perspectives. This not only enriches workplace culture, but also enhances customer service thanks to a more diverse workforce.
Reduced costs
Employees who qualify for WOTC often face barriers to employment. As a result, they may prove to be more loyal to businesses who hire them. This can lead to higher retention rates, reducing recruitment and training costs associated with high turnover rates.
Better customer service
Hiring WOTC-eligible employees can have a positive impact on a retail store’s public image. Customers increasingly value businesses that prioritize diversity and community engagement. By participating in the WOTC program, retailers can build stronger connections with their customer base.
Social responsibility
WOTC aligns with corporate social responsibility initiatives, allowing retail stores to actively contribute to their communities. By providing job opportunities to individuals facing employment challenges, retailers play a pivotal role in fostering economic empowerment and stability.
Navigating WOTC
While the benefits of WOTC are substantial, navigating the application process can be complex. Retailers should seek guidance from experienced tax professionals or utilize WOTC vendors like Arvo Tech to ensure they maximize their eligible credits.
The Work Opportunity Tax Credit is a valuable tool for retail stores seeking to boost profits and give back to their community. Ultimately, WOTC is a win-win opportunity that can propel retail stores toward sustained success and profitability.