One of the things we do every day is explain how a Human Capital Management company (us) is different from a traditional HR firm (pretty much everyone else). We enjoy it. Human Capital is in our blood. But because Human Capital is so different, we have to talk a lot. We talk about how we approach your Human Capital holistically. We talk about how the “single solution for everyone” in HR is a failing model. We talk about how payroll, benefits, compliance, and onboarding are all pieces of a larger HR organism that, to work properly, need to speak to each other. What we don’t get to do very often is get into the details of how we find value for companies where most of our competitors don’t bother to look – and how we can turn your human capital into a revenue producing center. So, we’re going to do that now with one of the many strategies we use: WOTC credits.
If you’re a seasoned HR vet, you know what the WOTC program is. But here’s a brief refresher:
- WOTC stands for Work Opportunity Tax Credit
- WOTC credits incentivize companies to hire members of target groups through tax credits
- WOTC members include veterans, SNAP recipients, TANF recipients among many others
(see the full list here: https://www.doleta.gov/business/incentives/opptax/eligible.cfm)
Why don’t most payroll companies look for WOTC credits available to your business?
The question of why we’re one of the few companies who use WOTC credits to maximize value for our clients is easy: it’s time consuming if your system isn’t set-up to catch opportunities, and most HR systems don’t talk to each other. So, if you have your payroll company with their system, someone on your team in charge of compliance using your internal system, a separate onboarding process run by your HR department, and none of those systems talk to each other, it is very hard. And, simply, it isn’t worth the Payroll company’s time to find them for you. Better for them to just do what they do and send you a bill.
How does Human Capital Management solve the WOTC time problem?
This one is easy, too: we’ve automated the system so that WOTC opportunities are identified automatically and secured on your behalf. Our system is the best in the industry, and since we handle everything related to HR for you, the individual pieces speak to each other in real-time. So, when you hire someone new, our (and your) onboarding process asks the right questions, and our system sends it to the appropriate agency and tracks the credit for you. A tangled, messy process whittled down to one, simple onboarding step.
How is the WOTC program emblematic of the drawbacks of traditional payroll companies?
Traditional payroll companies are not set up to unearth WOTC opportunities. But “So what?” you say. “How big of an opportunity is this anyway?” Great question: Estimates of employees who qualify for the WOTC program 1 in 5, and you can get a tax credit between $1,200 and $9,600 per employee. So, it’s a big opportunity. But it’s just one opportunity. There are hundreds of strategies we use to identify value in your Human Capital. That’s the power of Human Capital Management. We don’t do everything because we want as much of your business as possible. We do everything because to do Human Capital right means doing everything in one strategic, cohesive way.
So, next time you’re talking to your Payroll company, ask them if they’re looking for WOTC credit opportunities with every new hire. If they give you a blank stare, or if they say “Sure, we can figure that out for you,” call us.