Work Opportunity Tax Credit Program
Clarus Solutions helps businesses claim 2-4x more tax credits than other providers with cookie-cutter solutions.
We work with your accountant to make sure nothing is left on the table.
We do all the legwork so you can increase your cash flow. If we can’t help you claim any credits, you pay $0.
What is WOTC ?
The Work Opportunity Tax Credit (WOTC) is a federal program for employers large and small. It encourages the hiring of targeted groups of workers who historically struggled to find employment.
Our WOTC Optimization Program can increase cash flow up to 40% and maximize your bottom line.
WOTC Optimization Program
Whether your company hires blue-collar or white-collar workers, 1-in-5 new hires are potentially eligible. Maximize your profitability and reduce your Federal tax liability by capturing these financially beneficial Work Opportunity Tax Credits (WOTC).
Discover more about our WOTC Optimization Program below.
20% of new hires potentially qualify for the WOTC program
40% improvement on cash flow for your business
$2,150 per eligible new hire on average
Organizations and companies in industries such as temporary staffing, transportation, warehousing, manufacturing, distribution, retail, food service and healthcare (as well as other businesses which rely on an hourly-wage and entry-level workforce) are well suited to benefit from WOTC because of the nature of a higher turn-over rate for their industries.
The credit represents a permanent reduction in income tax and directly reduces a business’s effective tax rate. By leveraging this tax credit, your business will increase profits and obtain additional cash flow.
There is no limit to the amount of credit available through the program as a whole or to a single employer.
WOTC Eligibility
Are you hiring workers that fit these specific target groups?
You could be eligible for significant WOTC tax credits!
Unemployed & disabled veterans
TANF (Temporary Assistance for Needy Families)
SNAP (Food Stamp) recipients
Vocational rehabilitation referral
Long-term unemployed
Ex-felons
Summer youth employee (living in Empowerment Zones)
Supplemental security income recipients
Designated community residents (living in Empowerment Zones or Rural Renewal Counties)
Work Opportunity Tax Credit Calculator
Select your industry and annual new hires to get an accurate estimated savings below:
*Based on actual data from clients we’ve assisted. Your credit could be higher or lower – this provides a realistic idea of what to expect.
How it Works
- 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.
- Certify eligible employees
Those screened as WOTC eligible from Step 1 need to be certified with 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!
- 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).
- 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.
If you give us the opportunity to administer WOTC for your organization, we’ll schedule a kick-off call to talk through each of these steps in detail and make sure the process is seamless to you and your team. Blake Baumann, our VP of Client Success, will be on that call to answer any questions and to make sure everything runs smoothly.
No limit on the number of new hires that qualify to claim the tax credit
On average, 20% of new hires are eligible for the program
Tax credits range from $1,200 to $9,600 per eligible employee
On average, we’re able to capture $2,150 per eligible new hire for your business
Primary industries served
Healthcare
Staffing
Assisted Living
Trucking
Construction
Call Center
Retail
Hospitality
Restaurants
Integrate with your systems
We integrate with many applicant tracking and payroll systems to streamline the credit process
