The Work Opportunity Tax Credit (WOTC) is a federal hiring incentive administered by the U.S. Department of Labor (DOL) and the Internal Revenue Service (IRS) that encourages employers to hire individuals facing barriers to employment.
In his latest Forbes Business Council article, Modernizing Work Opportunity Tax Credit Administration to Maximize Workforce Outcomes, Geographic Solutions President and Founder, Paul Toomey, explores how modernizing the administration of WOTC can help strengthen the workforce.
Toomey examines how WOTC helps employers connect with individuals who may face significant barriers to employment while providing businesses with federal tax incentives for eligible hires. He also addresses some of the administrative challenges that can limit the program's effectiveness, including complex eligibility requirements, manual processes, disconnected systems, certification timelines, and employer engagement.
Toomey emphasizes that technology can play an important role in improving WOTC administration by streamlining workflows, supporting more accurate data exchange, and providing greater visibility into program activity. However, he notes that successful modernization requires more than implementing new software. Organizations should also prioritize thoughtful change management, staff training, clearly defined requirements, and processes designed around measurable outcomes.
Ultimately, Toomey outlines how a more modern and connected approach to WOTC administration can reduce burden, strengthen participation, and expand employment opportunities for individuals facing barriers to work.
Read the full article on Forbes: Modernizing Work Opportunity Tax Credit Administration to Maximize Workforce Outcomes