Work Opportunity Tax Credits Description
The Work Opportunity Tax Credit (WOTC) is a Federal Tax Credit Program available to employers who hire individuals from eligible target groups. Each year, employers claim over $1 billion in tax credits under the WOTC program. Employers can earn a tax credit of between $1,200 and $9,600 per eligible employee.
Eligible Employees Include:
- SNAP (food stamps) Recipients
- TANF Recipients
- Designated Community Residents
- Vocational Rehabilitation Referral
- Supplemental Security Income Recipients
- Summer Youth Employees
Achieve 100% Participation and Completion
We streamline the entire process in our single web-based system, AllPay, that eliminates paperwork and manages the flow of data--ensuring completion and participation within the 28 calendar day guideline.
- New Hire Paperwork: With our paperless new hire onboarding system, employees must complete and sign documentation online before they can be added to payroll in Allpay, including the tax credit survey.
- We Process Forms: As your new employee completes onboarding, Alliance Payroll processes IRS Form 8850 and ETA Form 9061 with the proper State Workforce Agency. As the process is completely paperless, all forms are submitted within the 28 calendar day window from the employees start date.
- Track Employee Hours within AllPay: As our AllPay solution is a single web-based system, we verify which employees have worked the minimum of 120 hours to qualify an eligible hire for a tax credit to your business.
- We File for Credit with the IRS: As we have been filing reports on behalf of our clients since 1989, we will compile and file your tax credit form with the IRS at the end of the year.