Hiring in healthcare is still an ongoing challenge. While labor costs have retracted compared to pandemic spending, the industry faces a continual workforce shortage. These factors stress finances, forcing businesses and facilities to innovate and find advantages wherever possible.
At the same time, the healthcare industry faces a need to reduce disparities among patient groups and the workforce. The WOTC program is one such solution and can help offset labor costs and enhance diversity, equity, and inclusion initiatives.
However, like most tax-related processes, there are several key steps to follow and forms to complete. A WOTC integration simplifies data collection and tracking for faster tax advantages. Here’s how.
What is WOTC?
WOTC stands for Work Opportunity Tax Credit, a federal tax credit available to employers who hire new employees from certain groups. To qualify, these new hires must consistently face barriers to employment, and the employer must apply for and receive certification that the individual meets eligibility requirements.
The program aims to help offset the costs of hiring and encourage employers to invest in the workforce. Employers can access $2,400 to $9,600, depending on the wages and the group. Taxable employers can claim it as a general business credit against corporate income taxes, while tax-exempt businesses can claim it against payroll taxes.
Eligibility
The WOTC credit applies only to new hires who fall into one of 10 groups, including recipients of IV-A, SNAP benefits, or long-term family assistance, among other groups. In addition, the new hire must:
- Be in their first year of employment
- Work at least 400 hours for the employer
The credit applies to 40% of up to $6,000 in wages or 25% for those who work less than 400 but at least 120 hours. The WOTC may apply to up to $24,000 in wages if the new hire is a qualified veteran.
Application Process
You must follow certain steps within a specified timeline for each new individual to qualify for the credit. Without these forms, your application may be denied.
The process is as follows:
- Prescreen new hires on or before the day you make a job offer
- Submit the prescreening form to the local workforce agency for certification within 28 days
- File the WOTC form with the IRS once the employee works the qualifying hours
The prescreening form is an essential piece of the application. You must show that you completed this step before or during hiring, making your onboarding process critical.
Faster Forms with Empeon and WOTC.com Integration
Many healthcare businesses use paper WOTC forms, manually drag the hours into the form, and scan or email the forms to tax professionals or the IRS. WOTC.com simplifies this process with a digital form, allowing organizations to rapidly collect information, file with the government, and track their status.
Empeon’s partnership with WOTC.com brings this collection process directly into the onboarding workflow. The Empeon onboarding solution, Paths, allows you to build custom workflows, send offers, collect data, and assign tasks to new hires. The WOTC.com integration offers a proactive solution to unlock tax advantages for your healthcare workforce.
Enhancing Diversity and Inclusivity with WOTC.com
The WOTC program and integration also provides an opportunity to enhance your diversity, equity, and inclusion practices within your workforce. The program encourages you to look beyond your normal hiring practices to include those from underrepresented groups.
At the same time, it opens up career opportunities for workers that may not have been there otherwise, while also creating financial stability and promoting inclusion. Together, you can reach underserved and underrepresented workers and build a workforce with a rich mix of experience, perspective, and ideas.
How the WOTC.com Integration Works
Accessing the WOTC.com integration is straightforward. Once you enroll with WOTC.com and activate the integration, you add the form as a task to your onboarding workflow.
You can customize the path to include a few relevant documents or steps and send it as a standalone workflow or include it in your overall onboarding series.
Either way, once you press send, the employee receives a link to set up a profile in the employee self-service hub and complete the document. The WOTC form links directly with the WOTC platform, where information is securely stored.
WOTC.com sends completed forms to the government for certification and tracks the application status. Once you receive certification, you can leverage Empeon payroll reporting tools and export data to WOTC.com. The platform will assign the data to the employee and track eligibility over wages and hours worked.
In addition, you can export year-end reports from WOTC.com for annual tax filings. The reports show all the qualifying employees for the year and the total eligible credits, allowing your tax professionals to quickly file and claim the credit.
Benefits of the Work Opportunity Tax Credit Integration
The Empeon and WOTC.com collaboration provides several benefits for your onboarding process, from streamlined data collection with an embedded form and a seamless experience for new hires to easier tax credit tracking.
Embedded into the Empeon onboarding workflow
Rather than adding yet another siloed tool to your tech stack, the WOTC.com integration brings your data collection into one central hub. You no longer need to send your employees a dozen attachments and manually upload those forms into separate software.
Instead, you can create a seamless digital experience with an instant onboarding workflow. Add the WOTC form to your custom path and capture essential demographics and prescreening information alongside signed job offers, licensing, and tax details.
The integrated form encourages your staff to complete screening with prominent and clear instructions. However, completion is voluntary, and the form allows staff to opt out of screening should they choose.
Simplifies onboarding for new hires
Starting a new position at a new company is overwhelming. New hires complete an average of 54 tasks during onboarding, usually over seven days. For most people, that’s like drinking water from a fire hose.
You can improve the experience and reduce form fatigue by adding the WOTC forms directly into the workflow. Send one link to your new staff and collect all the essential data in one fell swoop. New hires can complete forms on their mobile device and finish all the paperwork before they start their first day.
Easy WOTC tracking
Qualifying for the tax credit takes time. The form must go to the local state workforce agency (SWA) for certification, which can take up to a few months to process. In addition, once you receive the certification, it takes time for the employee to work the required hours.
The WOTC.com dashboard provides a snapshot of all forms and each status, the number of prequalified and approved employees, and the potential credits you can claim. Track each qualifying employee by the type of opportunity with group-specific coding, such as SNAP or SSI benefits, and monitor total wages and hours worked for a quick eligibility snapshot.
Optimize Purposeful Solutions with Empeon
Labor and payroll are significant factors in daily operations and overall business costs. The better you manage these departments and expenses, the more efficient and profitable your business becomes.
But ultimately, labor is about people and relationships. A diverse and inclusive workforce enriches collaboration, creating a strong team and open environment.
Empeon’s HCM platform provides the tools and insight to do just that. Leverage automation, intuitive workflows, and centralized data to make better decisions faster and at scale. With Empeon’s solutions and integrations, you can empower your business and your people.
Discover the benefits of a custom Empeon solution paired with a WOTC.com integration for your business. Register with WOTC.com or book a demo today.
