Big Impact below the EBITDA line!
Can you you pass up $10,000 per hour? As I’ve worked with many companies over the years I know that managing their business can be challenging. I was thinking thru the math of one client who couldn’t find the time to take advantage of work opportunity tax credits. She hired a lot of hourly employees and in her industry about 1 out of 2 generally qualify for employer tax credits at an average of $2,400 each.
So I did the math on the 3 steps it takes to manage the process to get the credits. #wotc #payroll
- It takes less than one minute to send the screening link to applicants prior to their interview,
- Once the decision to hire is made, it takes another minute to log in and convert the applicant to “hired” along with the hire date
- Any when the credits come in from the state he just needs to update payroll information to verify that the employee hours worked, maybe 5 minutes
So for 7 minutes work, to get $1,200 (1 of 2 qualify for $2400) is just over $10,000 an hour! Can you pass up $10,000 an hour?
OK, I’m having a bit of fun but the numbers may not be far off for most employers and some may exceed my example. Calculate your estimate.
Jim Stowe runs Instigate, a Mt Clemens Michigan based consulting organization as
CHIEF INSTIGATOR of: HR EFFICIENCY ,TAX REDUCTION & COST OPTIMIZATION.
Jim has an extensive background in HR services including over 30 years at companies such as ADP, General Mills and Liberty Mutual among others and holds a Master’s Degree in International Business from Central Michigan University