By Scott Shipman
Work Opportunity Tax Credits (WOTC) can help your organization's bottom line, but what if it could also help with your Diversity, Equity & Inclusion (DE&I) initiatives and retaining employees? HR.com recently published “How SMBs Can Leverage WOTC To Help Accelerate DE&I Initiatives” written by Carli Brown, another one of our WOTC subject matter experts. The article discusses the benefits of WOTC for SMBs (small and medium-sized businesses) as they look to address possible talent shortages, and it’s just as relevant for larger employers. By hiring employees from certain targeted groups, employers can help their bottom line while also addressing their DE&I efforts.
Here are a few highlights:
WOTC is defined as a federal tax credit available to employers who hire and retain employees from certain targeted demographic groups that typically have challenges gaining employment, and could be worth a federal tax credit up to $9,600 per eligible employee.
80% of workers want to work for a company that values DE&I, and they may leave if they don’t think their company feels the same.
More workers may qualify for WOTC credits than you think, since long-term unemployed and those who have needed nutritional assistance may qualify.
Hiring WOTC eligible employees might also be good for your retention efforts, since our Equifax data1 shows that on average, workers hired through WOTC tend to stay in their jobs for the same amount of time or longer as non-WOTC hires.
Here’s a link to the article, and if you think it may be time to consider implementing a WOTC screening program, contact us to connect with our subject matter experts You can also check out this resource HR Best Practices - How to Get Up to 100% WOTC Screening and Why for a deeper dive on the subject.
Data¹ Sourced from The Work Number® and Equifax clients’ WOTC certifications.
The information provided is intended as general guidance and is not intended to convey any tax, benefits, or legal advice. For information pertaining to your company and its specific facts and needs, please consult your own tax advisor or legal counsel. Links to sources may be to third party sites. We have no control over and assume no responsibility for the content, privacy policies or practices of any third party sites or services.