Now that I have used WOTC, how do I get what I need for tax reporting?
For employers like you that have elected to take advantage of our Work Opportunity Tax Credit product, we want to make sure we can get you the information you need so that your business can take advantage of the tax credits when you file your tax returns.
We will send you a tax package report in which all your ‘earned’ tax credits are calculated in time for you to file your taxes. This report can be shared with your tax preparer so that they can make sure you realize the benefit of these credits.
When will these tax reports be ready?
We are already at work on preparation, but will need to wait until year-end before finalizing. Partners who return their payroll information by January 17, 2024 in the correct format and data will receive their tax package by March 1, 2024. Payroll data received after January 17, 2024 will be processed on a first come, first service basis.
Will my tax preparer need to do anything special to use the tax credits?
Yes. In addition to the WOTC Year End Tax Report we will provide, your tax preparer will need to also include an IRS Form 5884. For additional information on these forms, please reference: https://www.irs.gov/forms-pubs/about-form-5884
OK. Sounds good. What do you need from me?
Good question. In order for us to get what we need to prepare the year-end WOTC Tax Credit Reports, and to make sure we can maximize the tax credit benefit for your company, we will need specific payroll information through midnight on 12/31/23.
Using our system, we have made this pretty easy and the next page is a quick step-by-step Quick Guide on how to do the year-end payroll information upload.
What counts as payroll?
What you paid your employees in wages and compensation. As defined by the IRS (emphasis added):
Qualified wages are wages (as defined in section 3121(a) of the Internal Revenue Code (the "Code")) and compensation (as defined in section 3231(e) of the Code), both determined without regard to the contribution and benefit base (as determined under section 230 of the Social Security Act), paid by an Eligible Employer to some or all of its employees after March 12, 2020, and before January 1, 2024. Qualified wages include the Eligible Employer's qualified health plan expenses that are properly allocable to the wages.
These values are before any taxes are removed from the employee's payroll.
Do I include holiday time in hours worked?
Yes, as long as you are paying the employees for these hours, you can include them. You can also include overtime hours as well.
What format do I upload the data in?
From the instructions on the Year End Guide, only CSV files are accepted.
When I upload payroll data, I'm given an error that the employee is not in the system. How do I fix that?
We can only accept employees that have completed the WOTC certification process. If they are in any other state, then we can not accept their payroll information. Downloading the Payroll Template will provide all of the WOTC certified employees that we can accept payroll information for.
Got it. Do you have a date when you need this by?
Yes. Absolutely. We want to make sure we get you your Tax Report on time, so please submit the information some time during the first two weeks of January. Ideally:
- No earlier than 1/2/24
- No later than 1/17/24
What should I do if I have any questions?
Should you have any questions, feel free to contact Heartland's WOTC Customer Service at:
- Email: email@example.com
- Phone: 888-320-4456
Thank you. We wish you the best for 2024 and beyond.