Posted by
Viventium
| May 26, 2021
There are so many things employers have to track when hiring new employees –everything from legal and company policy documents to forms and paperwork. While all of these are required, many employers often forget that there are also ways to put money back into their business’s pockets when they hire a WOTC-eligible employee. Although there were talks of WOTC being discontinued after 2021, recent legislation authorized an extension until 2025. Read on to find out why all skilled nursing and senior care organizations should consider taking advantage of this program.
What is WOTC?
The Work Opportunity Tax Credit (WOTC) is a Federal tax credit available to businesses that’s designed to aid individuals from groups that typically experience significant barriers to employment, which includes:
This information is for educational purposes only, and not to provide specific legal advice. This may not reflect the most recent developments in the law and may not be applicable to a particular situation or jurisdiction.
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- Veterans, including disabled veterans
- Individuals participating in government assistance programs, such as: ◊ Temporary Assistance for Needy Families (TANF) ◊ Supplemental Nutrition Assistance Program (SNAP)/Food Stamps
- Individuals residing in empowerment zones or rural renewal counties, which are economically distressed urban or rural communities
- Vocational rehabilitation referrals
- Ex-felons
- Supplemental security income recipients
- Qualified long-term unemployment recipients (long term is defined as 27+ weeks of unemployment assistance)
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- Learning/continuing education
- Leadership development
- Financial programs offering flexible pay options
- Wellness initiatives
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- No More Tedious Paperwork: So, you may be asking yourself, “Why don’t more businesses take advantage of WOTC?” Well, many either don’t know about WOTC or don’t know how to fill out the time-consuming WOTC paperwork. But it doesn’t have to be that way – with integrated onboarding solutions, automated WOTC service, and HR consulting, WOTC can be simple. By including the IRS Form 8850 in the electronic onboarding packet for new hires, Viventium clients see over 99% participation, and everything can be tracked and reported seamlessly with our software to ensure you receive each credit.
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- A Lower Turnover Rate: Utilizing the funds from WOTC and being able to fund programs and benefits for your staff can help improve your turnover rate. Remember, investing in your biggest asset – your employees – can be your largest ROI. Happy employees will stay with your facility longer and provide higher-quality service to your patients.
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- An Improved Bottom Line: In an industry with tight margins, WOTC can have a major impact on your bottom line and provide “found” money. By utilizing this tax credit, facilities are able to invest these WOTC dollars back into the business, helping to fund operational costs and other important programs.
This information is for educational purposes only, and not to provide specific legal advice. This may not reflect the most recent developments in the law and may not be applicable to a particular situation or jurisdiction.