A Word of Caution on Calculating the Value of the Work Opportunity Tax Credit Online

I wanted to share something with you that has come to our attention here at Cost Management Services. There are several different websites out there that offer a Work Opportunity Tax Credit calculator. We have one, you can check out ours here. a WOTC calculator takes an educated guess to try to give you an estimate of how much money you could potentially be saving when you use the Work Opportunity Tax Credit.

What we are seeing is that certain websites are providing wildy inacurate numbers. Some provide an “industry estimate,” which is really just another guess. No state agency has published WOTC qualification data by industry. We do not have that level of detail. The websites that concern us the most are the websites with calculators that claim that 100% of all of your new hires will qualify, and you will receive a tax credit.

Don’t use another WOTC Tax Credit calculator. Other WOTC tax credit service providers, like us, are displaying calculators on their website that ask you to enter the number of new hires into the calculator and then they are showing that 100% of the new hires qualify.

This is so inacurate. Don’t fall for this shady, unethical marketing practice that is simply used to hook a customer, and get them in the door to be left extremely disappointed.

I encourage you to visit our Work Opportunity Tax Credit Statistics page. We have statistics for every state from 2014-2018. A more accurate number of qualified new hires is between 10-15% of new hires. Not 50%. Not 100%. 10-15% is a more realistic and accurate number, and that’s what our WOTC Calculator is based on. Don’t be fooled by misleading websites that tell you otherwise.

Cost Management Services (CMS) has been providing WOTC Screening and administration for over 20 years. We have never seen a customer with a 100% qualification rate. The true qualification rate, again, is between 10% and 15%. There may be variations based on location, industry and even the roles you’re hiring for.

The Value of the WOTC Tax Credits

Some inaccurate websites will try to tell you that you’ll receive “up to $9,600” for every potential qualified new hire. $9,600 is potentially available when you hire a qualified unemployed veteran. That is the only category of new hire that reaches that number. Here are the actual numbers, reported by the Department of Labor, that you may expect to receive:


Contact CMS Today to Start Saving!

CMS offers WOTC screening services that can be integrated with any employee onboarding program. In our 20+ years of performing WOTC Screening and Administration we’ve saved millions for our customers. Contact CMS today to start taking advantage. Call 800-517-9099, or click here to use our contact form to ask any questions.