| Human Resources.. |
HR as cash cow?
How to qualify for employee tax credits
Hiring and training can equal a new employee’s annual salary. A tax credit program from the federal government could take a bite out of that cost.
Move over sales. While you still bring in the big bucks, human resources and training have been quietly inching their way to a place of prominence in the company's bottom line.
One company, the JobApp Network, is making it easier for human resources departments to bring in revenue by offering a way to screen employees for the Work Opportunity Tax Credit (WOTC).
Set up for the welfare-to-work system, WOTC offers tax credits to employers hiring people who have been on welfare, food stamps, or other forms of assistance; or who live in geographically designated zones such as inner-city neighborhoods. Tax credits are also available to businesses within those zones.
Employers can earn $2,400 for each new adult hire fitting the criteria, $1,200 for each summer youth hire who qualifies, and a whopping $9,000 for each hire who has been on long-term family assistance.
The credits can go a long way toward offsetting the high costs of hiring and training.
This is important news for franchises, especially those in the restaurant industry, because hourly employees may qualify for WOTC and in doing so, can bring thousands of dollars to their employers in the form of federal tax credits.
Getting the credits isn't easy. As with all things governmental, there is a lot of red tape involved in screening, qualifying, applying and receiving these tax credits. So although the program has been around for years, not all companies are taking advantage, even if they're hiring qualified employees - especially franchises that are small or mid-sized.
Enter JobApp Network. This company, which already provides technological solutions to streamline the hiring process for franchises, now screens for the WOTC.
"It was a natural fit to do this," says CEO Blake Helppie. "There are already companies that provide this WOTC screening, but most don't service small- to mid-sized companies. There are phenomenal hits on these credits in the restaurant industry, especially fast-food franchises, and we can help those franchises easily get the credits they've got coming."
With the JobApp system, potential new hires complete a series of pre-screening questions on the phone or online before they're interviewed. Some of those questions will be designed to find out if the potential hire will allow the employer to qualify for the credits.
If the applicant is ultimately hired, and the employer qualifies for the credit, the system generates the proper forms, which include all the necessary qualifying information. The employer then simply has the employee sign the forms.
"We've eliminated the red tape so more employers can take advantage of these tax credits," Helppie says.

