Since its introduction in 1996, WOTC has offered tax breaks to businesses that hire workers deemed by the Department of Labor (DOL) to have significant barriers to employment, such as veterans, disabled workers, individuals on temporary financial assistance and residents of certain geographic zones. Despite the benefits, employers often conduct a risk-benefit analysis around whether the savings are worth the potential need for additional training for those individuals.
Equifax Workforce Solutions' findings are likely to dispel much of the hesitance some employers may have about screening for WOTC eligibility among their candidates. When combined with the recent long-term renewal of the program, ensuring it remains in effect through the end of 2019, and the addition of a new category for the long-term unemployed, more employers are expected to participate in the program to gain maximum tax savings and benefit from these high-quality workers.
According to an analysis of proprietary data from The Work Number, the company's flagship verification service, Equifax Workforce Solutions found that WOTC-eligible employees are shown to:
- Stay in their jobs for the same amount of time or longer as non-WOTC hires
- Be less likely to leave their job in the first year, resulting in diminished flight risk
- Progress through the ranks at the same pace as traditionally hired co-workers
- Earn as much throughout their careers as their peers
Even more significant, the Compliance Center solution from Equifax Workforce Solutions helps employers turn the challenging process of screening candidates for WOTC eligibility into a streamlined, integrated solution alongside the Form I-9 employment eligibility verification process.
"Equifax Workforce Solutions continually seeks ways to drive efficiency for our clients to help them get greatest return on investment and maximum value from our offerings," said Erik Trusler, senior vice president of Marketing for Equifax Workforce Solutions. "As our latest research shows the added value of the WOTC program, employers have much to gain when hiring individuals from the DOL's protected classes."
Additional findings from Equifax Workforce Solutions research into the value of the WOTC program can be found in the white paper, "Dual Value of the Work Opportunity Tax Credit: Reduce Turnover While Increasing Income," available for complimentary download at: http://workforce.equifax.com/WOTCdualvalue.
Equifax powers the financial future of individuals and organizations around the world. Using the combined strength of unique trusted data, technology and innovative analytics, Equifax has grown from a consumer credit company into a leading provider of insights and knowledge that helps its customers make informed decisions. The company organizes, assimilates and analyzes data on more than 800 million consumers and more than 88 million businesses worldwide, and its databases include employee data contributed from more than 5,000 employers. Equifax Workforce Solutions, an Equifax business unit, is a leading provider of human resource compliance, analytics and verification technology and services.
Headquartered in Atlanta, Ga., Equifax operates or has investments in 24 countries in North America, Central and South America, Europe and the Asia-Pacific region. It is a member of Standard & Poor's (S&P) 500® Index, and its common stock is traded on the New York Stock Exchange (NYSE) under the symbol EFX. Equifax employs approximately 9,200 employees worldwide.
Some noteworthy achievements for the company include: Ranked 13 on the American Banker FinTech Forward list (2015); named a Top Technology Provider on the FinTech 100 list (2004-2015); named an InformationWeek Elite 100 Winner (2014-2015); named a Top Workplace by Atlanta Journal Constitution (2013-2015); named one of Fortune's World's Most Admired Companies (2011-2015); named one of Forbes' World's 100 Most Innovative Companies (2015). For more information, visit www.equifax.com/business or www.equifax.com.
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SOURCE Equifax Inc.