On December 20th, 2017 Congress passed the Tax Cuts and Jobs Act, with a very important outcome for home care recruitment. With many changes being made to the tax code, the most important outcome for recruiting in home care may not have been a change at all, but the absence of change for one very important program. The Work Opportunity Tax Credit, or WOTC, is preserved under this new law, remaining active for employers to utilize today. So what is WOTC and what does it mean for you?
What is WOTC?
The Work Opportunity Tax Credit is available to employers who hire employees that are part of certain targeted groups, including being an unemployed veteran, on welfare or food stamps, and more. You can read in-depth about the program in home care in our previous post Hidden Tax Credits for Caregivers: How Caregivers & CNAs Could be Worth Even More to Your Business. So what does the continuation of WOTC through this new tax law mean for you in your role?
For Owners
As a home care owner, this means more money on the bottom line from the hires you’re already making today. If you currently take advantage of these tax credits you can breathe easy knowing you won’t lose out on the benefits you’ve been collecting. If you don’t currently file for WOTC, the time to start is now. We estimate around 40% of all Caregivers and CNAs qualify for WOTC, with credits ranging from $2,400-$9,600. The credits you get back can completely fuel Caregiver and CNA recruitment for the year, allowing you to add more resources and grow your business faster.
For Recruiters
Home care recruiters spend countless hours pouring their blood, sweat, and tears into hiring Caregivers and CNAs to provide quality care. With the Work Opportunity Tax Credit, these Caregiver hires can be worth even more! Bring up the issue with someone in your organization such as an owner or director. You could be saving them tens of thousands of dollars every year! With those tax credits rolling in, your agency can reinvest that money into Caregiver recruitment, arming you with the resources you need to excel even further!
If you want more info on the Work Opportunity Tax Credit and are looking for a good place to start, check out our Secret Growth Engine: Caregiver Tax Credits Webinar Replay. You’ll learn all about WOTC and what you need to get started in this quick, 10 minute webinar.
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