1. Maximizing Bottom-Line Benefit: Work Opportunity Tax Credit

2. Maximizing Bottom-Line Benefit: Work Opportunity Tax Credit
Lyn Blackmon, Client Service Manager, Tax Credits ADP
Beth Willman, Sr. Client Service Manager, Tax Credits ADP

3. Agenda Federal Tax Credits Updates Leveraging Technology WOTC Program
Increasing WOTC Tax Credits
Type of WOTC screening process
Other Success drivers
Reporting tools
What’s new?

4. 1/1/17 1/1/17 12/31/19 Legislative Update FedEZ
(Federal Enterprise Zone Program)
IEC
(Indian Employment Credit)
WOTC
(Work Opportunity Tax Credit)
1/1/17
Program in legislative hiatus
as of
Outlook for renewal
Retroactive claim opportunities available
EXPIRED
Outlook for renewal
Retroactive claim opportunities available
1/1/17
Program in legislative hiatus
as of
EXPIRED
12/31/19
Legislatively active
through
Extended 5 years at end of last hiatus (active next three years)
Maintain focus on compliance
Updates available through ADP Boost blog page:

5. ADP SmartCompliance® | Work Opportunity Tax Credit
What is WOTC? -Work Opportunity Tax Credit is a federal employer tax credit. Its purpose is to incentivize companies, by offering tax credits. -The employer tax credit is based on hours and wages eligible employees earn.
Most WOTC credit is up to $2,400 per eligible employee. Some categories are up to $9,600 in credit.
Screening
Certification
Reporting
Long-Term Family Assistance Recipient (TANF)
Veteran Target Groups
Short-Term Family Assistance Recipient (TANF)
Supplemental Security Income Recipient
Qualified Ex-Felon
Summer Youth Employee (in empowerment zone)
Food Stamp
Recipient (SNAP)
Designated Community Resident
Vocational Rehabilitation Referral
Long-Term Unemployed

6. Leveraging Technology
To Your Benefit

7. Increasing WOTC Tax Credits
And Measuring Success
A successful WOTC program involves the following compliance steps:
Front end job applicant screening
Submitting documents; RFV, DL, and proof of address
Following up with state agencies on tax credit certifications
Tracking qualified wages and hours via payroll
Calculating the tax credit
Reporting Results
Key Drivers of Tax Credit Performance:
Screening Compliance – 95% GOAL (total screened new hires / total new hires)
Tax Credit Eligibility Rate (% of screened new hires eligible for WOTC)
Submitting WOTC Exports each week
Documentation Compliance
Monitor your Program
ADP action is blue highlight

8. Why Screen for WOTC Automatically?
Helps provide better performance and results than manual approach
An effective hiring tax credits capture process helps position the company to collect other incentives
Tax credits provide a quantifiable return on your Applicant Tracking System (ATS) investment
As additional targeted groups and programs requiring screening are introduced into law, the integration allows for timely participation
The tax credits secured can actually help pay for the ATS system cost
Credit borrowing is big business. There are approximately six billion credit card solicitations per year. I’m sure that many of you receive multiple offers in the mail each month inviting you to open new credit card accounts. When a person is delinquent on their credit card payment, the creditor may issue a garnishment order. In many states, once a garnishment is received, the employer may be required to send back additional information. Requirements vary by state and county and may require the employer to notarize the response; send copies to third parties, such as the creditor or creditor’s attorney; and provide certification of mailing so that all parties know when and how the copy was sent. There is no standardization regarding creditor garnishments. This makes the process complex and burdensome for employers.
Bankruptcies are another type of garnishment that you may receive. Ninety-eight percent of all bankruptcies are personal filings rather than business filings.
Banks pulled back during the recession on extending credit, but it was too late. . And it is not as easy as just sending in a payment to the creditor for a garnishment, employers are required in many states to send back additional information.
State requirements vary by state, it could even be at a county or jurisdiction level…they may require the employer to:
Notarize their response
Send copies to third parties, such as the creditor or creditor’s attorney
Certification of mailing – in other words they need to know when the copy was sent to the third party or the employee and the method – was it mailed?
The frequency of responses can vary – if a continuing garnishment is received an employer might need to response multiple times – other states may require submitting the response with the payment, and so on.
And some states may require that you respond in their own form, however, others might be okay in not using their own form, as long as all questions are answered properly and timely.
There is no standardization regarding creditor garnishments, and this makes the process very complex and burdensome for those employers receiving orders.
There are two types of personal bankruptcies—Chapter 7 and Chapter 13. With a Chapter 7 bankruptcy, debt is forgiven or liquidated. With a Chapter 13 bankruptcy, the individual makes arrangements to repay the debt within a certain period of time. This is often known as the wage earners plan.
A rather different type of garnishment is called Wage Assignments because the employee voluntarily agrees that money be withheld from wages without a court order. Wage assignments are governed by state law, and since they are voluntary and the employee can specify the amount, they do not fall under the requirements of the Federal Consumer Credit Protection Act or F-C-C-P-A.
Currently, there are three states that do not have provisions allowing wage assignments. They are: Alabama, Connecticut, and Florida. While in other states, written employee or spousal consent is required for wage assignments.

9. Focus Capturing all potential WOTC credits Best WOTC Processes
WOTC embedded in Avionte application*
Candidate seamlessly screens within the application
Minimize re-entry of information
Managers reviews View Forms button in Avionte
Managers send ADP any required documents
Clients have seen a minimum 15 percentage point increase in screening compliance
*or WOTC link within edocs
Client Experience
Can seamlessly integrate with the Avionte Applicant Tracking System (ATS)
Paperwork is substantially reduced from the process
Applicants and hiring managers find it easier to navigate the process
Achieve better compliance results with screenings and forms
Maximize potential WOTC credits

10. Avionte Application WOTC screening

11. Avionte Employee screen shot

12. Focus Back-up WOTC screening Processes Impact
WOTC link within edocs
Stand-alone WOTC link on Kiosks
Mobile WOTC screening
Call-in WOTC screening
Impact
Ensure all candidates screen prior to the job offer regardless of the process
Increased candidates time for screening
Managers have extra steps
Branch Screening compliance % is lower than with automated screening
More labor intensive for both Managers and candidates

13. Focus Weekly Exports that drive success
Posting weekly Tax Credit (Payroll), Employee and Location Exports to ADP:
Consistency ensures that eligible records are processed timely to the states*
Screened records are updated as hired
Weekly and monthly WOTC reports are accurate and effective
Tax credits are calculated with up-to-date data
*This avoids lost credits.

14. Focus Monitor your Program to drive success
ADP provides the WOTC Data Analytics Dashboard
Snapshot and Detail Performance Views
Actionable and Prescriptive Alerts
Customizable Views by Organizational Structure and Timeframe
Dynamic Reporting you can drill down, filter and export

15. Accessing ADP’s WOTC Analytics
Go to the ADP SmartCompliance Platform at
Enter your User ID (EX: and password

16. Accessing ADP’s WOTC Analytics
Click on Processes, then on Tax Credits >Analytics Dashboard

17. Analytics Dashboard Snapshot Dashboard Screening Compliance
At-a-glance dashboards summarize your WOTC program performance
Screening Compliance
Form 8850 Compliance
WOTC Eligibility
Screening compliance rate across your organization
Helps prevent lost credit opportunities
Status of received, pending and expiring 8850s
Helps focus attention on required actions
Displays data on WOTC eligibility across your organization
Helps identify areas of
focus for future job
growth

18. Accessing ADP’s WOTC Reports
Click on Reports > Tax Credits > Search
Recent reports will be listed. The 8850 Date Verification and Document Follow-up Report are good to review each week
Select a date to view historical reports, click Search

19. What’s New - ADP? Digital Signature
Form 8850 Pages 1 and 2, RFV and LTU Forms
Will replace the current PIN eSignature
Applicant will sign with a mouse or their finger or stylus (mobile device)
Will reduce requests for additional documents

20. What’s New - Avionte? AERO Platform
Update to the new platform automatically includes the WOTC screening
No changes to the WOTC screening process
Access to the candidate record will show the same results

21. Thank You for Attending!
Questions?
Thank You for Attending!
This document contains information that is proprietary and confidential. It must not be copied, transmitted, or distributed in any form or by any means without the express written permission of ADP. The information provided in this document is for informational purposes only and not for the purpose of providing legal, accounting or tax advice. The information and services provided by ADP should not be deemed a substitute for any such professional advice. Such information is by nature subject to revision and may not be the most current information available.
ADP and the ADP logo are registered trademarks of ADP, LLC. ADP A more human resource. is a service mark of ADP, LLC. All other marks are the property of their respective owners. Copyright © 2017 ADP, LLC. All rights reserved.