Work Opportunity Tax Credit: Are You Leaving Money on the Table?
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1 Work Opportunity Tax Credit: Are You Leaving Money on the Table? Proud Member and Endorsed Partner of the Special Thanks To The
2 2 WHAT IS WOTC? What We Want To Share With You WHO QUALIFIES? HOW CAN MOTOR CARRIERS TAKE ADVANTAGE OF THESE CREDITS?
3 What is WOTC 3 Federal tax credit available to employers who hire individuals from target groups with significant barriers to employment. Tax credits range from $1,200 to $9,600 Every dollar of credit saves government $11.36 No limit on the amount of new hires eligible for WOTC To be eligible: employer must be paying federal income taxes Employee must be a W-2 Employee must be a brand new hire Credits can be carry forward up to 20 years
4 WOTC Introduction 4
5 Myth: We Don t Hire Them 5 You Do! 20% WOTC Qualifying Rate of Your New Hires Average Tax Credit is $2150 6% 9% 21.3% of US population (52.2 million people) on welfare programs (United States Census Bureau ) 14% 71% 2.1 M new hires were made in 2015 in transportation and logistics Industry is committed to hiring 100,000 veterans over the next 2 years (according to ATA s 2015 Truck Driver Shortage Analysis Report) SNAP Recipients Veterans TANF Recipients Other
6 6 TRUCKING + WOTC = PERFECT FIT HOW TO TAKE ADVANTAGE OF WOTC
7 Assign the Responsibility 7 Dedicate a person internally the responsibility Ensure that IRS Form 8850 is being completed (pre-screening notice and certification request) Best Practice: Include with I-9 form Best Practice: Make sure it is legible Best Practice: Multiple onboarding locations, train the terminal manager on WOTC Gathering the information needed for IRS Form 9061 (individual characteristics form) Submit the forms to the appropriate state workforce agencies 28 days to submit
8 WOTC State Workforce Agencies 8 File with the state workforce agency of your driver s home address Paper filing On-line application
9 Tracking & Reporting 9 Must work a minimum of 120 hours to obtain a credit: 25%: hours or 7,200 23,999 miles 40%: 400+ hours or 24,000+ miles
10 Denied 10 Must have a denial process to request Claim Reconsideration: Veterans Target Group DD-214 (record of military service) Rating Letter (provides a service-connected disability rating required for disabled veterans) TANF & SNAP Verify state receive benefits and documents to verify address in that state Designated Community Residents & Summer Youth Documents to verify address (ex. current utility bill, driver license, etc.) on form 8850 Vocational Rehabilitation Individualized Plan for Employment (IPE) documentation indicating open date, close date, and/or last date of service Vocational counselor information including name and phone number Long-term unemployment Ex-Felons Submission of ETA Form 9175, Long-Term Unemployment Recipient Self-Attestation Form Work Opportunity Tax Credit (WOTC) Program Court documentation indicating felony conviction; or Federal conviction, parole/probation officer information including name and phone number
11 Certified 11 File for the credit with IRS Form 5884 (attached to the return) Keep your records for 3 years: documentation that supports the credit payroll records
12 Using 3 rd Party Providers 12 2 Core Methodologies Mechanical One of Many Solutions Pre-Determined Implementation Get what you get / Cruise Control No Operational Communication Call Center Rep Thoughtful WOTC Focused, Maximization Experts Flexibility (Applicant/Onboard/Other) Set Expectations, Measuring Results Ongoing Communication Dedicated Contact or a Tax Credit Consultant
13 13 Do you want to know how much you are leaving on the table: Get a FREE WOTC Assessment Report Click here to begin WOTC assessment Clarus Solutions CONFIDENTIAL 2015
14 14 Just Some of Our Clients
15 15 Type Headquarters Privately held corporation Columbus, Ohio About Clarus Solutions Employees 60 Service Work Opportunity Tax Credit Solutions over 25 years combined experience Sectors Transportation, Staffing, Retail, Fast Food, Hospitality, Senior Living Care
16 16 QUESTIONS & ANSWERS Thank you! CLARUS CONTACT: BLAKE BAUMANN (972) Clarus Solutions CONFIDENTIAL 2015
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