Employment Tax Credits

Are you taking advantage of tax credit opportunities as you hire new employees? 

Let ADP help you identify the opportunities and administer your program.

• Identify available credits
• Screen employees and process eligibility forms
• Monitor and manage screening compliance and form compliance
• Submit forms to state agencies for tax credit certification
• Calculation of credits
• Reporting and tracking

Work Opportunity Tax Credit (WOTC)

This program provides an incentive to employers to hire and retain employees based on targeted groups, including social assistance recipients, veterans and qualified youth. Qualifying businesses can receive a tax credit of up to $2,400 per eligible employee during the first* year of employment.

The target groups for the WOTC program were expanded on January 1, 2009.  Please contact ADP today to discover how the change might impact your organization’s tax savings. 

Welfare to Work (WtW) – NOW INCLUDED IN THE WOTC PROGRAM

The WtW category within WOTC provides a credit for eligible employees during the first two years of employment. The credit provides an incentive to employers to hire and retain employees who have received long-term welfare and family assistance for 18 consecutive months, either through Temporary Assistance to Needy Families (TANF) or Aid to Families with Dependent Children (AFDC).

Other State Employment Based Credits can include:

• State Point-of-Hire credits (WOTC piggy-backs)
• Job Creation Credits

ADP's solution for Employment and Wage-Based Tax Credits identifies geographic and demographic tax incentives through:

• Location eligibility determination
• Employee eligibility screening
• Form processing
• Monitoring/tracking
• Calculation of credits

Flexible Screening Options

ADP offers multiple screening options to identify WOTC/WtW eligible employees: Call-in, Mail-in, Web-in and Express Screen. Simply select the solution that best suits your company’s needs. All options utilize a proprietary geographic mapping software program that quickly and efficiently identifies eligible employees.

ADP’s intelligent screening tools automatically track over 1,000 credits in our database. Once screening is complete, all you need to do is have the employee sign the pre-populated form and drop it in the envelope that we provide.

Interested in learning more? Contact us or call 1.800.CALL.ADP, ext. 411 (1.800.225.5237, ext.422).