Tax Credits for Home Care with a click.
The Work Opportunity Tax Credit (WOTC) program for home care is a Federal tax credit program that provides tax credit incentives for employers to hire certain classes of individuals. This is a tax credit for your home care business, not the caregiver. 20-30% of caregivers qualifiy and the average tax credit is $2,600. Earning even one tax credit can more than pay for ClearCare.
A real example: If you hire 50 caregivers this year and put each to work for a minimum of 120 hours, your agency could receive a $26,000 tax credit. Or, think about how many caregivers you'll hire this year and assume 20% will qualify where each tax credit is worth $2,600.
Unemployed Veterans who have at least a 10% service connected disability can earn your home care agency a $9,600 tax credit -- the highest WOTC credit available.
If you hire and put qualified caregivers to work between 120 - 400 hours, your business could reduce or eliminate your tax liability.
Caregivers complete form 8850 during the hiring process. Paperwork is submitted to the state automatically.
View caregivers who are WOTC eligible when identifying caregivers for shift assignments.
Know instantly if a caregiver qualifies for one of the 13 categories.
WOTC is a hiring incentive to employers for hiring and retaining individuals with significant barriers to employment.
Unemployed Veterans, families that qualify for food stamps, live in an Economic Empowerment Zone, TANF recipients, Supplemental Security Income recipients, and other groups may qualify. Across most home care agencies, 20-30% of your caregivers will qualify.
Our WOTC provider will send your CPA all the required documents to claim your earned credits.
We'll also check for state tax credits.
The Tax Credit program is serviced by General Information Services, a WOTC processor for companies like Wal-Mart and the U.S. Postal Service.
There is no limit as long as you hire and retain the caregiver for a minimum of 120 hours.
This is not a reimbursable tax credit but any tax overage can be carried over for 20 years.
The biggest challenge with WOTC is 1) getting caregivers to complete the paperwork 2) submitting the paperwork to the state 3) reminding your staff to put the caregiver to work between 120 - 400 hours. ClearCare helps with each of these 3 challenges by 1) making the appication process paperless -- just send a link to your caregiver via ClearCare 2) we automatically submit the paperwork to the state 3) within ClearCare you can see which caregivers are WOTC eligible so you prioritize shifts.
A 20% fee will be charged for any WOTC credit what is found and redeemed. This charge is only accessed once a valid tax credit is found.
Many home care agencies have heard of the WOTC program for home care but the paperwork is so hard to keep up with, many agencies quit the process. ClearCare has made the process easy and scalable for all your hires.