As a business professional, you'll likely want to make sure your company takes advantage of all the government tax breaks it can. Chances are good you're missing out on valuable tax credits and other incentives. These incentives can significantly impact your company's profitability and efficiency. However, meeting the qualifications can be difficult and time-consuming if you don't have expert help.

Work Opportunity Tax Credit (WOTC)

The Work Opportunity Tax Credit (WOTC) program awards tax credits of up to $9600 per person to employers who hire people from eligible groups who have traditionally faced discrimination in hiring practices. To receive this credit, employers must fill out Form 8850 and make a written request to their state workforce agency to certify their employee is a targeted group member. WOTC helps these marginalized workers while rewarding companies that broaden their hiring pool.

The program is slated to run through 2025 and applies to employees beginning work at your company after December 31, 2020.

Target groups

The WOTC target groups include the following:

• Veterans
• TANF (Temporary Aid to Needy Families) recipients
• Ex-felons
• Vocational rehabilitation referrals
• Summer youth employees
• Supplemental Nutrition Assistance Program (SNAP) recipients
• Long-term family assistance recipients
• Individuals receiving SSI benefits
• Designated community residents
• Long-term unemployment recipients

Members of these groups have long faced difficulties finding employment opportunities, a problem that affects the entire community, not just the success of your company.

Community benefits

Your company's hiring practices have a widespread effect. Businesses that hire from targeted groups strengthen the local community by helping to remove the stigma attached to these groups and offering them increased financial security and social acceptance. Their improved finances benefit other local companies and social programs since they return money to the local economy and local tax base. Diverse communities are beneficial to everyone and have been found to improve area economics, educational opportunities, and health programs. Your company's ethical hiring practices have a positive ripple effect.

The Maximus solution

Since 1978, Maximus has worked with employers to implement and administer the Work Opportunity Tax Credit and provide other essential employer practice services. Our experienced teams work to ensure your company's success while improving employment opportunities for marginalized groups. In addition, our combined efforts improve communities now and in the future. Maximizing tax credits is just part of our mission. Our services include:

Work Opportunity Tax Credit

We help you maximize tax credits through government programs that encourage hiring from targeted populations. You can focus on company operations while we handle the paperwork and other important details.

Location benefits

Capitalizing on location benefits may be difficult and time-consuming for your company's staff. At Maximus, we show you how to use incentives for green building projects and economic development in designated areas, including empowerment zones.

I-9 services

As an industry leader, our electronic I-9 processing and verification services streamline your hiring process and ensure accurate authentication. When you work with us, you onboard new hires quickly, avoid compliance violation risks and meet government regulations with a minimum of time and effort.

MAXOutreach

Our MAXOutreach program allows your company to reach a diverse pool of tax credit-eligible employment candidates. You can target job openings to diverse candidate pools and geographical locations, track outreach and job distribution activity, and access community organization networks, as well as lessen discrimination risks.

MAXOutreach simplifies your tax credit hiring efforts. Learn more with our free infographic.

Final thoughts

Your company benefits in multiple ways by hiring from targeted groups and taking advantage of other government tax incentives. Studies show that you benefit financially from the tax credits while also creating a loyal, productive employee team. Maximizing your tax credits and staying compliant can be complicated and lengthy processes, however. That's why you need the guidance of an experienced employment practices services provider.

At Maximus, we have decades of experience with tax credit programs, employee verification, and targeted group employment pools. We handle the paperwork and details so you can focus on efficiency, profits, and workplace culture.

To learn more about our services and the best Maximus program for your specific needs, contact us today.