Ep 77: How to Maximize the Work Opportunity Tax Credit for Your Clients

Financial Advisors Want to Know: How to Maximize the Work Opportunity Tax Credit (WOTC) for Your Clients - Ep. 77 Jeff Newcorn

Welcome to the Financial Advisors Want to Know Podcast, I’m Catherine Tindall a CPA with Dominion where our focus is helping financial advisors navigate income tax planning and compliance for their firms.

Founder/President of R. Jeffrey Tax Credits. We are Thought Leaders for the 2020/2021 Employee Retention Credit (ERC) with 18 years of ERC experience. National experts in the area of the Work Opportunity Tax Credit (WOTC) with 25 years of WOTC experience. Experts in Federal Empowerment Zone Credit. WOTC and FEZ are now authorized through 12-31-25.

The WOTC credit is especially popular with franchised Restaurants, Home Care, Grocers and other industries with high turnover and hiring at/near minimum wage. My staff and I especially love to work with companies that have avoided doing WOTC or who have struggled with WOTC. My company provides the administration and calculation work necessary for my clients to accurately claim their WOTC tax credits.

For those companies located in, and hiring from a Federal Urban or Rural Empowerment Zone, we do the required calculation to allow our clients to claim that credit, too.

Podcast Takeaways:
What is the WOTC?
The Work Opportunity Tax Credit (WOTC) is a federal tax credit designed to incentivize businesses to hire employees from certain targeted groups, such as veterans, those on food stamps, and ex-felons, who face barriers to employment.

How Does the WOTC Benefit Employers?
The credit typically ranges between $1,000 and $2,400 per qualified employee, depending on the length of employment. For high-turnover industries like retail or hospitality, this can result in significant savings.

A Valuable Tool for Financial Advisors
While financial advisors might not directly benefit from the credit themselves, it’s a great way for them to add value to their business-owner clients. By understanding and sharing this credit, advisors can help clients maximize their tax savings and differentiate themselves from competitors.

The Simple Process of Claiming the Credit
The WOTC can be easily integrated into the hiring and onboarding process, where businesses can ask candidates a few questions to determine eligibility. Once approved, the tax credit is seamlessly included in the company’s normal tax filing process.

The Fight for WOTC’s Continuity
The WOTC has been extended multiple times through lobbying efforts, and there are ongoing efforts to make the credit permanent. Financial advisors should stay informed about these legislative developments, as it affects their clients' ability to claim the credit in the future.

Connect with Jeff Newcorn:
https://www.linkedin.com/in/jeff-newcorn-65a05910
https://rjeffrey.com/wotc/
224-420-2846

Connect with Catherine:
https://www.linkedin.com/in/ctindallcpa/

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