Frequently Asked Questions
What is WOTC?
WOTC, or the Work Opportunity Tax Credit, is a federal, tax incentive to reward businesses for hiring individuals within specific target groups.
What is a tax credit?
A tax credit is a reduction in the amount of taxes owed to the IRS. Credits are not a tax deduction but rather a dollar-for-dollar reduction in your actual tax liability, which makes them much more valuable than a deduction.
What is the profile of a company that benefits from WOTC?
The WOTC program is especially lucrative for companies in the following industries:
- Restaurants
- Temporary Staffing Firms
- Hospitals and Nursing Homes
- Hotel/Motel
- Convenience Stores
- Hospitality
- Telemarketing Firms
- Janitorial/Custodial
- Located in or near Empowerment Zone/Renewal Community
- Companies with high turnover
What other tax credits do you research and process?
Federal Empowerment Zone
State Tax Credits
Indian Employment Credit
Research & Development Credit
Disaster Tax Credits
What is a Tax Credit Consultant?
Tax Credit Consultants manage hiring-based tax incentive programs including Work Opportunity Tax Credit (WOTC), Welfare-to-Work (W-t-W), and Enterprise Zone Credits.
How does the process work?
An additional WOTC survey form is added to the onboading process. From there, Tax Credit Group will submit the form for certification, maintain records according to IRS guidelines, compile official certificates and calculate the total credits earned.
How do I know which employees qualify?
The screening process is the only way to accurately know which employees qualify for WOTC or any other employer tax credit.
Will you work with my CPA?
As your WOTC partner, we will provide all data necessary for your CPA to accurately claim all employer tax credits available.
Which credits will you screen my company for?
In addition to WOTC, we screen for other employer incentives including: Renewal Community, Empowerment Zone, Enterprise Zone and Rural Renewal Counties.
Can we do this in-house?
Yes, however, most companies find that using Tax Credit Group as their WOTC and Tax Credit partner realize more credits, less stress and avoid the “red tape” of dealing with government agencies.
Do credits apply to my current employees?
Unfortunately, no. Hiring credits can only be claimed for “new hires”.
Do I have to change my current hiring practice?
Not at all. You will only need to include our WOTC survey form in your new hire packet.
Should I be concerned about Discrimination as it relates to the questions asked?
Not at all. The official screening forms were developed by the IRS and DOL in compliance with Federal guidelines.
How do tax credits affect my bottom line?
The tax credits you earned throughout the year will be deducted from Federal taxes owed, reducing your tax liability and increasing annual profits.
How can I estimate my potential tax credits?
Estimating tax credits takes into account many variables; the easiest way to get a ballpark estimate is by using our tax credit calculator.
What are the fees for tax credit you process?
We charge a % of the amount of tax credit processed. There is also a small account service fee which includes TCG researching all employer tax credits, providing a branded portal, secure hosting of all data and secure portal to upload documents.
How do I get started?
Click here or call toll-free (563) 583-2115. TCG can setup your account and prepare the forms for screening and earning tax credits in a matter of days.