The Work Opportunity Tax Credit (WOTC) is a Federal Tax credit available to Employers who hire and retain Veterans and individuals from other groups with significant barriers to employment. Employers claim about $1 billion in tax credits each year under the WOTC program. Typically, 20% of new hire Employees may qualify for up to $9,600 in tax credits.
The following types of Employees qualify for WOTC:
- Veterans
- TANF Recipients
- SNAP (Food Stamp) Recipients
- Designated Community Residents (living in Empowerment Zones or Rural Renewal Counties)
- Vocational Rehabilitation Referral
- Ex-felons
- Supplemental Security Income Recipients
There is no limit to the number of individuals an Employer can hire to claim the tax credit. Click here to learn more about the Work Opportunity Tax Credit.
Integration with Synergi Partners
R365 Hire is integrated with Synergi Partners to provide the guidance needed to receive these tax credits. Our partnership works as follows:
- Sign Synergi's Client Services Agreement and Power of Attorney
- Create and post a job with R365 Hire
- Review and hire a candidate through R365 Hire
- Upon request, provide Synergi with any additional missing information required
- If Workforce Payroll is enabled, payroll information can be submitted to Synergi using the WOTC Payroll Data (Synergi) report.
- Use the provided year-end document to claim credits on your tax returns
Note: Synergi assesses a fee when the tax credit is accrued. This means the fee only applies when an Employer is eligible to apply/use the available credit. R365 Hire does not requirement additional payment for this service. Click here to learn more about getting started with Synergi.
Including the WOTC Form in the Onboarding Process
Once R365 Hire has enabled the WOTC integration in the account, a WOTC form will be visible on the Onboarding Settings page. An account administrator must add the WOTC form to at least one checklist.
In most cases, this form should be added to the account's primary Onboarding Checklist, as all new hires completing this form will maximize potential tax credits.
Once assigned, the WOTC form will appear on the New Hires' Onboarding Checklist.
Employee and Manager Steps
An Employee will need to click into the WOTC form in their Onboarding Checklist to see the form above. This form is embedded in R365 Hire and ask Employees to provide some basic personal information and then answer a series of questions that can help identify potential tax credits.
When completed, the Employee will need to submit the form.
When the Employee completes this form, the Manager can review it to determine if the Employee was able to qualify for a tax credit.