Electronic filing and signatures reduce costs, expedite processing and help the environment
October 15, 2015
By Stacey May, Director of Tax Credits
The IRS allows, and in some cases requires, electronic filing of many tax forms, enabling taxpayers to receive any potential refunds much faster than if they were sent using traditional mail. Many states are following suit for the Work Opportunity Tax Credit (WOTC).
Twenty-three states plus Washington D.C. allow electronic filing for WOTC, and many more are establishing the means to do so. Each state tends to use its own system, but several states use the same technology. Electronic filing eliminates paper waste and streamlines the process, making it more efficient and accurate. Automating the WOTC process is especially beneficial for understaffed states with small budgets, because it significantly improves turnaround for applications and certifications.
HKP online forms solution uses electronic filing and electronic signatures to make the WOTC filing process easier than ever. In a few simple steps, your business can have your application filed. First, clients set up an account on the HKP system. Second, employees fill out the WOTC forms on a computer terminal at your location. Our secure system will ensure greater accuracy than paper forms by reminding applicants of required fields and completing questions based on previous answers. Third, HKP will make sure all forms are submitted and reviewed in a timely manner. Finally, after receiving determinations, sometimes within 24 hours for states that are fully electronic, our online system will be updated. Clients have 24/7 access to all of their information, including certifications and denials, credit amounts, and other useful information.
While many states conduct the process electronically, some have not yet adopted the trend, so the forms must still be printed and mailed for those states. Instead of forcing clients in those states to complete paper forms, HKP’s tax credit department simply prints and mails applications for clients in states without e-filing, while still allowing the client to use the web-based system for all of their employees. We do the legwork, determining which applications to e-file and which ones to print and mail based on each state’s individual requirements.
Eventually, all states will likely go electronic. In fact, almost 80% have committed to implementing an e-filing system by the end of 2014. HKP is in close contact with WOTC state administrators throughout the country to stay abreast with the latest developments and improve service to our clients, ensuring they’re able to take advantage of valuable tax credits in an efficient and environmentally friendly way.
Many industries are great candidates for the WOTC program, but the staffing industry in particular is at the top of the list when it comes to benefiting from the program. The staffing industry is a great fit due to the type of employees being hired and continual influx of new hires. HKP already assists many staffing companies who receive thousands of dollars in tax credits each year!