5/19/2020 Covid-19 Update – Hiring or Rehiring Furloughed Employees
All This may be very valuable to your firm especially if your firm furloughed employees and are now hiring them back.
There are tax credits for hiring new employees-known as the Work Opportunity Tax Credit (WOTC) and worth $1,000 to $2,450 for each qualifying new hire. A candidate will likely qualify if they have been eligible or received state unemployment compensation in the last year, been on Food Stamps, been on a similar welfare or welfare to work program or a recently Veteran. There are some other possible qualifying factors-such as working part time jobs with no career future or no healthcare.
One SME partner is HireTECH-a Texas based firm that is leader in the firm for these services AND they work on a contingency/success fee basis. As a referral of CFO Solution, their fee is capped at 15% and it is payable ONLY if your firm receives a tax credit.
I just spoke to our contact, a Director with HireTECH, and they advise that all employers register anyone they hire OR REHIRE from furlough. Each state will make the decision is a rehire is eligible-current thinking is that states are doing whatever they can to incent employers to hire and rehire so there is a fair probability that the states will approve the application.
Contact me and I will introduce you to our contact (so your firm receives the rate discount).
Process is fairly simple-an engagement letter explaining roles and the 15% success fee paid out of the approved credit.
Each employee is registered with two weeks of rehire-they answer a few questions-on line (phone, tablet or computer) and the application is processed to the corresponding state office SO this works for multi location employers. HireTECH takes care of the getting the application to the right state office and expediting review and approval, and in some cases, arguing for approval if the credit is denied. Credit letter authorization, or denial, is sent to company contact and to HireTECH and the credit, if approved, is processed. Then the firm is invoiced for the 15% payment.
Some of our firms have praised HireTECH for efficiency, professionalism and intervention assistance.
IF you want to know more, let me know. THIS IS VERY TIME SENSTIVE-TAKE ABOUT A WEEK TO GET COMPANY ENGAGED AND ACTIVE AND THEN EACH EMPLOYEE APPLICATION MUST BE RECEIVED IN THE CORRESPONDING STATE OFFICE WITHIN 28 DAYS OF THEIR START DATE. NO TIME TO WASTE AND HIRETECH IS VERY BUSY.
Honestly an HR department can apply for WOTC credit on their own but it is easy to mess it up and really easy to allow the state office to find an error or reject it. Miss the deadline and the application is rejected. For 15% success fee, use the expert! (obviously the best practice)
This can work for one employee hire (I just enrolled my engineering firm) or for hundreds across the country. These are for full time positions with reasonable minimum wage requirements-generally 12 dollars or higher so worth applying.
Let me know your interest. We did a zoom call two years ago on this topic and some of you engaged. Slides can be found HERE. Now everyone needs to consider it.
Let me connect you as Tim is no longer with HireTECH and you will get charged 25 or 30% fee.
SHARE THIS ACCORDINGLY with other employers-in any state.
PS Some states have state or local credits for new hires that HireTECH will also file for. New York does and I am trying to get a list of the other states that have additional credits.