Staffing Agency Breakthrough: WOTC Tax Credits Finally In Reach
Capture WOTC Tax Credits For
Your Staffing Agency & Your Clients
If you own or manage a staffing agency, you probably know about Work Opportunity Tax Credits (WOTC) that offset hiring costs for targeted employee populations. But despite lucrative tax credits of up to $9,600 per new hire, program requirements have proven too cumbersome to pursue.
Nor do most agencies wish to interview job seekers about their personal eligibility for them to qualify. The entire process has been too complex, intrusive and time-consuming to prove practical.
This has prevented them from capturing the program’s financial and competitive benefits for themselves, their job seekers, and their clients.
WOTC’s Competitive Advantages
Prospective job seekers that qualify for WOTC tax credits are more attractive to both agencies and end employers. That’s because tax credits reduce employers’ financial risk during the highest risk period of initial employment. This obviously gives these job seekers an advantage in the workforce over those without this employment cost offset.
Staffing agencies able to package this employer benefit into their current staffing services will likewise achieve a competitive advantage. Tax credit offsets may cover most or all of their agency fees.
But the red tape and confidentiality needs of prospective employees have been enough to keep these benefits out-of-reach.
Unique Done-For-You WOTC 2.0 Platform Eliminates the Pain of WOTC Compliance
Two developments now make WOTC tax credits more feasible for virtually any staffing agency in America:
- New simplified federal regulations governing the WOTC tax credit program, and
- Stryde’s new fully-managed and confidential online WOTC platform.
Stryde is the marketing platform for Growth Management Group (GMG). GMG is a Michigan-based company that’s been securing WOTC tax credits for clients for over eight years. During that time, the IRS has never disallowed a dime of savings GMG has found for its clients.
These developments offer staffing agencies their first real-time solution for capturing WOTC credits for both themselves and their client employers.
Of course, a staffing agency needs to be profitable to utilize the credits, and many are only marginally so. The additional business this competitive advantage offers could be what finally solves that problem for them.
Even without additional business, many staffing companies could effectively eliminate their income tax liability with WOTC credits. This would substantially increase their after-tax profits. And Stryde’s affordable means of adopting WOTC credits into their business operations removes previous obstacles.
An Affordable Staffing Agency WOTC Back Office
Stryde has spent two years developing its online app to simplify for job seekers the entering of their personal eligibility information. This is done with no sharing of this information with their prospective employer, which improves compliance. A centralized back office team of WOTC experts and administrators manages the entire process for agencies and their clients.
A modest monthly fee for unlimited eligibility screenings – starting at only $19/month for small companies – replaces the bevy of fees and service charges that usually accompany WOTC services in more traditional models.
Stryde effectively becomes the staffing agency’s WOTC back office for capturing eligible WOTC credits.
- First to the staffing company if it initially hires the employee; and
- Then for the employer client when it buys out the staffing company’s contract and the eligible employee becomes the client employer’s employee.
This double-dipping of tax credits is in complete compliance with WOTC rules and regulations and makes it perhaps the most attractive business tax saving opportunity available today. This is especially true in industries that employ large numbers of employees meeting eligibility requirements like hospitality, restaurants and retail.
Other industries can make effective use of WOTC credits as well, especially those in which returning military veterans with relevant skills can apply those skills in the private sector. Tax credits available for this population are the most generous at up to $9,600 per eligible new hire.
Affordable Fees As Well
The usual range of fees charged by traditional providers of WOTC services range from 25-35%. And that’s before their exorbitant and cumulative service charges and surcharges for various additional services before their process is complete.
This combination of fees and service charges has kept WOTC out-of-reach for most staffing companies.
Stryde’s WOTC fee is just 15%, which – in combination with its lower monthly service charge structure – means much more of the tax credit savings remain with the staffing agency and its client employers. And without the usual headaches and anxieties that accompany traditional approaches to WOTC.
Find Out If It’s Time For Your Staffing Agency to Capture the Financial and Competitive Benefits of Stryde’s WOTC 2.0 Service
Find out in minutes how much your business may be eligible for by answering a few quick questions in our web app…