How to Calculate Work Opportunity Tax Credit Savings

Employers are saving billions of dollars across the United States. They’re doing it with a little-known tax credit called the Work Opportunity Tax Credit. Known as WOTC.

Not taking advantage yet?
More employers could take advantage of WOTC. Some simply don’t bother due to the perceived amount of administration involved. That’s where CMS can help. We do all of the administration for you. All you have to do is have your new hires complete the WOTC paperwork. This can be done online in a secure form, over the phone with our bi-lingual call center, or via mail or fax. WOTC is typically part of your onboarding paperwork. We make it easy. We review all applications, submit to appropriate state agencies, and track the value of the credit to make sure you get the maximum amount.

How WOTC is Calculated
The amount of the credit you receive is based on two factors:

  1. The WOTC category the employee falls under.
  2. The amount of hours the employee works. The minimum amount of hours to be eligible is 120.

Example WOTC Credit
In our 20 years of experience between 10-15% of new hires qualify for a WOTC credit. Rehires do not qualify. In this example, the employer is a fairly large manufacturing plant in the mid-west. They have 800 employees, but they see about 20% annual turnover.

Employees: 800
Annual Number of New Hires: 160
Potential Qualified: 16 – 24
Potential Credit *: $38,400 – $57,600
*Calculated on an average of $2,400 per credit. Credit varies based on hours worked and category. Maximum is $9,600.
Calculate Your Potential Savings

Contact CMS Today to Start Saving!

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.

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