By Scott Shipman
In mid-August,, the Biden Administration announced the largest permanent expansion of the Federal Supplemental Nutrition Assistance Program (SNAP), formerly known as food stamps, program, helping ensure families who may be undernourished have the ability to buy more food. Over 42 million Americans participate in the SNAP program and this announcement has potential positive implications for employers, who are seeking to re-staff their organizations, as the country seeks to break free from the economic constraints of the COVID-19 pandemic.
The expansion of the SNAP program will also contribute to the Work Opportunity Tax Credit (WOTC) program, a Federal income-tax incentive for employers of any size to hire individuals who have had barriers to employment.
WOTC is a powerful incentive, as it helps employers reduce their Federal Income-Tax payment dollar-for-dollar by the amount of the WOTC credit, which ranges from $2,400 - $9,600 for every eligible employee. WOTC provides income-tax relief for employers who hire from any one of ten statutory demographic groups: Veterans, Public Assistance recipients and other demographic groups are eligible for the WOTC credit.
WOTC was created in 1996, and Equifax Workforce Solutions has been helping employers manage their WOTC programs for the past 25 years. We are able to provide unique insights and process the WOTC program with greater efficiency to help:
hire individuals who need to work
reduce their tax liability
increase overall profitability
An example of this unique level of insight are Social Service Verifications, or SSVs. SSVs help us provide employers with distinct insight on the makeup of their workforce – and provide general insights in the number of potential WOTC eligible employees they hire. As a result of this level of insight, our clients have a greater understanding of how they can: recruit, hire, onboard, and retain employees to not only help them gain employment, but can also help the employer reduce their Federal Income-Tax, and better achieve their fiscal viability.
WOTC and SSV data also help us serve our clients by helping them achieve social impact initiatives. WOTC and SSV insights are very powerful to help employers address Diversity and Inclusion goals, so that everyone wins.
Employers who choose the WOTC Management service from Equifax Workforce Solutions benefit from our unique and differentiated insights, driven by deep data and operational efficiency. Both WOTC and SSV’s are critical components for enhancing your workforce. Contact us so we can show you how we can help you meet your Diversity and Inclusion goals, which can help you increase your profitability and fiscal viability.
WOTC can be a valuable tool to help you keep more of your organization’s income through hiring. But did you know there are several other benefits, including helping to reduce turnover? Learn more about how you can take advantage of these and other benefits as well as best practices to help make the WOTC process easier and more effortless in our white paper, The Dual Value of WOTC. Download it today to see how WOTC can make a positive impact at your organization.