Employment Tax Credits

Employment Tax Credits

Partner with TCS and get all the credits you deserve.

ADP’s Tax Credit Services (TCS) provides comprehensive screening and processing services in order to maximize federal and state employment tax credits. Our findings allow clients to take advantage of incentive programs based on specific client objectives, employee demographics and geographic locations.

TCS services includes:

  • Identification of available federal and state employment based tax credit programs
  • Employee screening and processing of eligibility forms
  • Monitoring and managing screening compliance and form compliance
  • Submission of forms to state agencies for tax credit certification
  • Receipt of client payroll and other data
  • Calculation of tax credits
  • Tax credit reporting to clients

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 $9,000 per eligible employee during the first* year of employment.

As of January 1, 2007, the target groups for the WOTC program have been expanded. Please contact ADP TCS today to discover how your company can receive even more 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).

Read more about online employment tax credit screening... (154KB)

Other State Employment Based Credits can include:

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

TCS Offers Multi-Portal Screening Options

ADP currently offers three screening options to identify WOTC/WtW eligible employees: online, call and mail. Simply select the solution that best suits your company’s needs. All three 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 credit types in our database. The online, call and fax methods even 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!