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• Tax and Compliance
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    • Wage Garnishment Services
    • Tax Credits and Incentives
      • Employment Tax Credits
      • Federal and State Tax Incentives
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Employment Tax Credits

Are you taking advantage of tax credit opportunities as you make new hires?  Let ADP help you identify the opportunities and administer your program.

Work Opportunity Tax Credit (WOTC)

Provides an incentive to employers to hire and retain employees based on targeted groups, including social assistance recipients, veterans and qualified youth. Qualifying businesses can receive a tax credit of up to $2,400 per eligible employee during the first* year of employment.

The target groups for the WOTC program were expanded starting January 1, 2009.  Please contact ADP today to discover how the change might impact your organization’s tax savings.

* Welfare to Work (WtW) – NOW INCLUDED IN THE WOTC PROGRAM

The WtW category within WOTC provides a credit for eligible employees during the first two years of employment. The credit provides an incentive to employers to hire and retain employees who have received long-term welfare and family assistance for 18 consecutive months, either through Temporary Assistance to Needy Families (TANF) or Aid to Families with Dependent Children (AFDC).

Other State Employment Based Credits can include:

State Point-of-Hire credits (WOTC piggy-backs) 
Job Creation Credits

ADP's solution for Employment and Wage-Based Tax Credits identifies geographic and demographic tax incentives through:

• Location eligibility determination
• Employee eligibility screening
• Form processing
• Monitoring/tracking
• Calculation of credits

TCS Offers Flexible Screening Options

ADP currently offers two screening options to identify WOTC eligible employees: Web and Express Screen. Simply select the solution that best suits your company’s needs. Both options utilize a proprietary geographic mapping software program that quickly and efficiently identifies eligible employees.

ADP’s intelligent screening tools automatically track over 1,000 credits in our database. Both the  Web and Express Screen screening tools print out the correct, pre-populated forms. All you need to do is have the employee sign the form and drop it in the envelope that we provide.

Interested in learning more? Contact us or call 1.800.CALL.ADP, ext. 411 (1.800.225.5237, ext. 411).