PRLA Spring 2019

14  • PENNSYLVANIA RESTAURANT & LODGING matters • Spring 2019 Source: This article was originally published on November 18, 2018, www.restaurant.org/articles/operations/using-the-work-opportunity-tax-credit You’re not on your own. Many employers work with third-party tax partners and WOTC vendors to manage documentation and file requests for certification. Vendors can integrate the tax-credit process with your other onboarding. If you operate in multiple states, a WOTC expert can help you navigate various state deadlines and submission criteria. Many of these vendors also give your new hires a way to self-identify their potential WOTC eligibility over the phone or online. This can keep the process confidential and respectful for employers who don’t want to be intrusive during the hiring process. Pennsylvania CareerLink offers numerous free services to help employers find and retain talent. See the sidebar on the next page for more information. 3 4 Consider the benefits. Employment tax credits can be an integral part of your overall tax planning strategy. The WOTC can help you reduce your federal income tax liability by between $1,200 and $9,600 per employee, depending on the target group and the number of hours the employee works. Employees generally need to be employed for at least 120 hours. The more hours an employee works, the larger your credit. There’s no limit to the number of eligible employees an employer can claim per year. These general business credits are available to C corporations as well as flow-through entities like partnerships, S corporations, and LLCs. 5 Hospitality is a natural fit. Restaurants and hotels are America’s training ground. The nation’s 1 million restaurant and 54,000+ hotel locations are the home of both first jobs and second-chance opportunities for people of every background. With an estimated 20 million employees, the hospitality industry today employs about one in 10 working Americans. For an industry with such a big impact on the American workforce, the WOTC provides valuable assistance to offset some of the costs involved in employing individuals who may need additional training. •