Cheryl Dallner is Vice President of Partnerships for Tax Credit Co., an iCIMS partner integrated with iCIMS Recruit. Tax Credit Co. helps clients increase earnings by optimizing the process of obtaining state and federal tax incentives, including national hiring incentives such as the Work Opportunity Tax Credit (WOTC), state enterprise zone tax credits, state and federal research and development tax credits, job training grants as well as other state and federal programs. Tax Credit Co.’s proprietary, next-generation software platform manages national tax credit screening and compliance for large, complex organizations. For more information, please visit the company’s website at www.taxcreditco.com. .
The last thing you want to do as an HR or Talent Management manager is add more work to your plate. You’re already doing more with less and constantly overcoming new challenges to optimize your recruitment and hiring best practices.
When I meet with talent management professionals, from mid-sized employers to the Fortune 100, to learn if they are taking advantage of hiring-related tax credits, I’m quick to mention it doesn’t have to add more work to their hiring process. For those who are not taking advantage of these lucrative programs that increase profits, they anticipate it creates more paperwork or adds more time to the hiring process. That can be the case if you’re capturing these programs with manual processes. The good news is there’s an easier way.
Contribute to the bottom line.
Often times employers are already screening for and capturing the Work Opportunity Tax Credit (WOTC), a hiring tax credit encouraging employers to hire targeted job seekers like Veterans and those receiving various forms of public assistance. With the WOTC program, employers can typically earn an average of $50 per hire. The credits can add up, which is an excellent way for HR to contribute to the bottom line and become a superhero.
Less work. More credits.
Once I learn they already are capturing the credit, I dig a little deeper. How are they capturing it? Do candidates have to complete the WOTC form 8850 manually or complete a phone screen? Does it require HR to get involved? This is where employers have fallen off their chair (literally) when they learn how seamless it can be.
Historically, capturing WOTC and other hiring tax credits required every candidate or new hire to complete a paper form. This causes extra work for HR and makes it difficult to ensure that every candidates completes it. The paper form is no longer required when you embed the tax credit screening questionnaire within your electronic application process. It typically adds only 30 seconds to 2 minutes to your application including capturing the candidate’s electronic signature. As a result, employers eliminate nearly 100% of the paper typically associated with capturing these dollars while ensuring you screen every candidate.
Can be used as the tie breaker.
Results of whether or not the candidate is potentially eligible for a tax credit is shown immediately within your recruitment solution along with the rest of the application data. That’s exactly how the IRS and the Department of Labor designed the WOTC program, encouraging employers to hire targeted job seekers and requiring you to screen on or before the day of job offer. If you have two candidates both qualified for the job and had great interviews, however, one is also tax credit eligible and the other one isn’t, why not hire the tax credit eligible candidate? You could receive several thousand dollars in tax credits -- pure profit to the bottom line.
How many credits are available for your company?
By gathering some basic data from a company like head count and a location list, we can determine how many Federal and state tax credit dollars are available. Typically 10% to 20% of a company’s employees are eligible for the WOTC program worth up to $9,600 per eligible hire, but there are also location-based hiring credits that can be twice as lucrative when hiring in states that offer these programs.
The best way to take advantage of the technology and all of the available tax credits for your company is to consult with a tax credit consultant. Look for one that not only has the screening technology that eliminates the effort but also has the expertise in nationwide tax incentives so no tax credit is left behind.