The Hidden Gem for SaaS Hiring: Unlocking the Work Opportunity Tax Credit | MTRS Insights | by Elizabeth Gaer-Leví

In the fast-paced world of Software as a Service (SaaS), finding top talent is a continuous challenge. The Work Opportunity Tax Credit (WOTC) offers a valuable solution, providing financial incentives for hiring individuals from targeted groups who often face barriers to employment. This often-overlooked tax credit can be a significant source of savings for SaaS firms, while simultaneously promoting a diverse and inclusive workforce.

Understanding the WOTC

The WOTC is a federal tax credit that encourages businesses to hire individuals from specific target groups, including:

• Veterans:?Honorably discharged veterans and those with service-related disabilities.
• TANF Recipients:?Individuals receiving Temporary Assistance for Needy Families benefits.
• Ex-Felons:?Individuals convicted of a felony within one year of their hire date.
• Supplemental Nutrition Assistance Program (SNAP) Recipients
• Designated Community Residents:?Individuals living in specific empowerment zones or rural renewal counties.
• Other target groups?including long-term unemployed individuals and those receiving vocational rehabilitation.

How SaaS Firms Can Benefit

The WOTC provides a direct, dollar-for-dollar reduction in a SaaS company's federal tax liability. The credit amount varies based on the target group and hours worked by the eligible employee, with a potential maximum credit of $9,600 per hire. Here's how SaaS firms can benefit:

• Reduced Hiring Costs:?WOTC can significantly offset the cost of onboarding and training new employees, making your hiring budget go further.
• Enhanced Talent Pool:?Accessing a wider pool of qualified candidates, potentially uncovering overlooked talent with diverse backgrounds and experiences.
• Positive Brand Impact:?Demonstrating a commitment to social responsibility and diversity by creating opportunities for often underemployed individuals.
• Boosting Employee Morale:?Fostering a more inclusive workplace culture, where all employees feel valued and supported.

Navigating the WOTC Process

While the WOTC can be incredibly valuable, the process of screening, certifying, and claiming the credit can be complex. Here's what SaaS firms need to know:

1. Pre-Screening:?Identify potential WOTC-eligible candidates during the hiring process.
2. Certification:?Obtain certifications for eligible hires using IRS Forms 8850 and 9061 (or utilize state-specific forms).
3. Claiming the Credit:?Include WOTC calculations on your business tax returns.

Partnering with the Experts: MTRS

Maximizing the benefits of the WOTC requires careful attention to detail and compliance. That's where Manufacturing Tax Recovery Services (MTRS) can assist. As a specialized tax credit firm, MTRS helps SaaS businesses streamline the WOTC process by:

• Identifying Eligible Hires:?Our expertise aids in recognizing potential WOTC-eligible candidates during your recruitment process.
• Securing Certifications:?We handle the paperwork and documentation needed to obtain timely certifications for eligible employees.
• Maximizing Your Credits:?Ensuring you claim the full value of available WOTC benefits, in accordance with IRS guidelines.

The WOTC Advantage for SaaS

In a competitive market where talent acquisition is key, the WOTC provides SaaS firms with a unique advantage. It's a win-win scenario, where you can save on hiring costs, cultivate a diverse workforce, and make a positive social impact.

Let MTRS Guide You.

About MTRS

MTRS (Manufacturing Tax Recovery Services) is a specialized tax credit firm based out of Charleston and Long Island. Our focus areas include the the Research and Development Tax Credit, the Work Opportunity Tax Credit, Cost Segregation, Sales Tax Recovery, and Growth and Accountability Consulting.

Founded with the mission to assist American businesses across all industries in maximizing their bottom lines without straining their finances or innovation calendars, MTRS stands out for its dedication and expertise. While our insights delve into crucial topics facing American businesses, they are meant for informational purposes and not as financial advice.

For digestible information and practical tools to navigate the tax landscape as a business owner contact MTRSNow.