As a staffing firm owner, you are constantly balancing profitability, compliance, and operational efficiency. With hiring demands increasing and margins tightening, every financial advantage matters. The Work Opportunity Tax Credit (WOTC) is one of the most valuable yet underutilized incentives for staffing firms—one that could save thousands of dollars annually with no changes to your hiring practices.
Now, with proposed legislation aimed at expanding and enhancing WOTC, the potential financial impact for staffing firms is even greater. However, navigating the complexities of tax credit programs is time-consuming and requires expertise. That’s where MJA & Associates can help.
How the WOTC Expansion Could Benefit Staffing Firms
The proposed Improve and Enhance the Work Opportunity Tax Credit Act aims to increase the financial benefits of WOTC by:
- Increasing the credit percentage – The bill raises the tax credit from 40% to 50% of qualified wages, meaning greater savings per eligible hire.
- Adding a second-tier credit – Employees who work 400+ hours will qualify for an additional credit, incentivizing long-term job retention.
- Expanding eligibility for SNAP recipients – Eliminating outdated restrictions allows more employees to qualify, increasing savings opportunities.
- Providing stronger financial support for workforce growth – With an estimated $202 billion in federal savings over the past decade, WOTC is a proven tool that benefits both employers and employees.
If passed, these changes will make WOTC even more valuable for staffing firms, providing greater tax relief and stronger incentives for hiring individuals from eligible target groups.
Why Many Staffing Firms Miss Out on WOTC
Despite its advantages, many staffing firms fail to fully utilize WOTC due to:
- Time and resource constraints – Managing WOTC requires tracking eligibility, submitting forms within strict deadlines, and ensuring compliance with evolving regulations.
- Lack of awareness – Many firms do not realize that WOTC credits can be applied retroactively for eligible employees already on payroll.
- Misconceptions about complexity – WOTC is often perceived as difficult to navigate, but with the right partner, the process is seamless and hassle-free.
- Concerns about cost vs. ROI – Some firms worry about outsourcing expenses without realizing that a performance-based model ensures they only pay when they save.
How MJA & Associates Simplifies the Process
For staffing firm owners, time is money. Managing WOTC in-house means diverting attention away from business growth, recruiting, and client relationships. MJA & Associates handles the entire process, ensuring you capture every eligible tax credit without added administrative burden.
Our services include:
- Tracking employee eligibility – Ensuring you never miss out on available tax credits.
- Managing compliance and documentation – Avoiding costly errors and maximizing claims.
- Handling all paperwork and state follow-ups – Saving you time and resources.
- Providing a risk-free, performance-based model – You only pay when you save.
With the potential expansion of WOTC on the horizon, now is the time to reassess your approach and start maximizing your tax savings.
Get Ahead of the WOTC Expansion – Partner with MJA & Associates
As industry experts with over 20 years of experience in tax credit processing, MJA & Associates ensures that staffing firms fully leverage WOTC without the complexity.
Don’t let tax credits go unclaimed. Let’s prepare for these enhancements together.
