Cost Management Services, LLC (“CMS”), an HR software business, announced the acquisition of RSM US LLP’s (RSM’s) Work Opportunity Tax Credit (WOTC) practice. RSM US LLP is a leading US provider of audit, tax, and consulting services.
CMS has been working with RSM clients for the past six years as a subcontractor offering Work Opportunity Tax Credit services.
“We are excited to work more closely with these clients to maximize their investment in the Work Opportunity Tax Credit program,” said Brian Kelly, Managing Partner at Cost Management Services. “One of the benefits we provide our clients, over other vendors, is that our clients have the flexibility to choose how they administer WOTC to screen their new hires, whether through CMS’s secure online portal, website or mobile, call center, paper or a combination of all of the above.”
Knowing Work Opportunity Tax Credit (WOTC)
The Work Opportunity Tax Credit (WOTC) is a federal tax credit that employers use for employing individuals from certain targeted groups.
Target groups include veterans, ex-felons, individuals who have received SNAP benefits (food stamps), individuals with disabilities, and the long-term unemployed. The targeted group primarily comprises people who have consistently faced significant barriers to employment. Currently, there are ten target groups.
The tax credit value for employing an individual from these target groups can go up to USD 9,600. Over 2 million WOTCs (Work Opportunity Tax Credits) were issued in the US last year, worth about USD 4.9 billion. “In an uncertain economy,” said Brian Kelly, “we don’t want employers to overlook potential tax credits that they could be eligible for. This is real money that can be reinvested back into your business. Don’t miss out.”
Cost management services
CMS is a WOTC service provider since 1997. It helps the employer curb the administrative tasks and supports the customer to avail of the credits he is eligible for.
CMS is ahead of the pack from a technology standpoint. It has developed a secure online portal that is easier to operate, increases participation, and improves processing times. New hires securely submit their WOTC questionnaires, and customers can view their WOTC application status and track the approximate tax credits value in real-time.