Adding Payroll: Your Guide to Seamless WOTC Credits
Welcome to the Payroll Page on WOTC.com – your comprehensive guide to navigating the critical intersection of payroll and Work Opportunity Tax Credits (WOTC). Discover seamless methods for uploading payroll information, insights on monitoring certified employees, and essential tips for optimizing your WOTC credits. Whether you're a payroll professional or an employer, this page is your gateway to unlocking the full potential of tax savings through WOTC. Let's delve into the intricacies of payroll and pave the way for a streamlined and rewarding WOTC experience.
What is payroll?
To receive a WOTC credit, we require the total hours, total gross wages, and the termination date (if available) for each WOTC certified employee. This information is required from each employee's start date for a full year, unless terminated.
There are 4 options for WOTC.com clients to submit payroll:
- Manual Process – logging into WOTC.com and inputting payroll information for all your certified employees.
- Payroll Report Upload – logging into WOTC.com and uploading an annual payroll report in January and July of each year.
- Payroll Login (preferred method) – we can access your payroll information from most payroll providers. Contact us for more details.
- Payroll Integration – building a payroll integration to periodically pull hours & wages from your platform into WOTC.com.
Payroll Submission Frequency: Payroll (Hours, Wages, & Termination Dates) should be entered quarterly, bi-annually, or annually depending upon the frequency and number of employees certified during the year.
1. Adding Payroll – The Manual Process:
2. Adding Payroll – Payroll Report Upload:
Questions About Payroll
On your dashboard, click #3 in orange “Certified Employees” to view the full list of employees that are currently certified.
To receive a WOTC credit, we require the total hours, total gross wages, and the termination date (if available) for each WOTC certified employee.
Yes, an employee must work at least 120 hours to qualify for a partial credit, and at least 400 hours to qualify for a full credit.
The answer is two-fold:
Regularly review your dashboard, aiming for a bi-weekly frequency at a minimum, with weekly checks being ideal. The goal of any employer is to ensure any certified new hire has enough hours to be eligible for the credit. A good best-practice is to identify any certified new hire as they are being paid to do a job that can additional can bring you tax savings for their time worked.
On a quarterly basis, you should be checking how many certified new hires you have and may want to upload payroll information each quarter.
Total hours worked from start date, till one year out. For salary employees, you need to figure out the per hour pay rate and multiply that by the number of hours worked. For full time employees you can use a base of 40 hours per week.
(Example – An employee worked for 4 weeks and got $4000.00 gross wages. 4 weeks x 40 hours = 160 hours.)
All gross wages from time worked, plus paid vacation, paid sick time, paid holidays, etc. Also include any bonus, commissions, or tips paid to employee.
Termination dates enable us to process partial credits. If you don’t record termination dates for your employees, you don’t need to provide it. WOTC.com will only process your partial credits once the full year from start date, passes. You will not lose your partial credits, they will just be processed later.
We only require the following information for certified employees, not the entire payroll report for your company.
- Employee Name
- Total Gross Wages for the year
- Total hours for the year
- Termination Date (if applicable)
Yes, on the Certified Employees page there is an export feature on the right-side top of page. You can download an excel version of your certified employee list.
It depends which criteria they got certified for. A SNAP recipient, maximum is $2,400.00. For hiring an unemployed veteran, it can be as high as $9,600.00. To earn the maximum credit, an employee must work at least 400 hours and get at least $6,000.00 wages.
Providing WOTC.com with your payroll login information is the easiest method for large clients. If that’s not an option, we prefer you upload a full YTD payroll report twice a year, in January and July.
Yes, your login and payroll information is 100% secure. WOTC.com is a SOC 2 certified company, which includes being HIPAA, PCI, and DDOS Compliant. More details can be found here: https://tcservicesusa.com/security/
For any additional questions you can email to [email protected] or call your account manager for assistance.
For employees that work in 24 hour shifts, as Live-In employees, each day or shift is calculated as 24 hours.