A home care agency’s most valuable asset in today’s market is their Caregivers, and that’s only getting truer by the day. But what if hiring Caregivers and CNAs could mean even more to your business? The Workforce Opportunity Tax Credit, or WOTC, could make that possible through tax credits for Caregivers.
A program designed to encourage employers to hire from targeted groups, WOTC is a dollar-for-dollar tax credit available to employers that hire Caregivers meeting specific criteria. Some of the factors that make Caregivers and CNAs eligible for this credit include being an unemployed veteran, on welfare or food stamps, and more. It’s estimated that 40% of Caregivers are eligible for this credit. Each credit is worth between $2,400-$9,600. The credit size is determined based on the number of hours a Caregiver works, how much they’re paid, and their type of eligibility class
This is not a tax deduction but rather a dollar-for-dollar reduction in your actual tax liability, which makes it even more valuable than a deduction. For example if you pay $100,000 in federal income taxes, and recover $80,000 in credits, you would pay $20,000. There are over $60 billion of total credits available to employers simply by recruiting and hiring Caregivers that qualify.
Home care recruitment is challenging enough - with WOTC you don't need to change anything about your existing hiring process - you just need to have candidates complete the proper paperwork during the interview process. You have the option to file yourself or use an external company to file for you. However, you need to be sure to file within 28 days from a new hire’s start date.
WOTC can provide an extra revenue stream just through hiring Caregivers and CNAs you’re already bringing onboard today. To get more info on WOTC, what it means, and how to file for these credits, download our WOTC Home Care Guide below. You can also check out how we've helped agencies reduce time-to-hire here.
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