The ADP Work Opportunity Tax Credit service enables hiring managers to automatically assess a candidate’s eligibility for a federal tax credit. This new module engages the applicant in an interactive tax credit questionnaire as part of the initial online job application. The applicant’s eligibility status is instantly determined and stored in the applicant’s file. If an applicant is found to be ‘Eligible’, the tax credit request is automatically sent to ADP when the hiring manager clicks ‘Hire’ in the applicant’s file. Upon receipt of the request, ADP performs a validation of the applicant’s information and then sends the tax credit certification to the client.
This one-time set up involves two steps: 1) Activate Service 2) Authorize Users. Once you have completed these steps, follow the User Guide to use this feature to initiate assessments and view assessment results in each applicant’s file.
Step #1 – Activate Service
To activate the ADP’s Work Opportunity Tax Credit module, go to Admin>Integrated Services. Click Tax Credit and then click Learn More for ADP’s Work Opportunity Tax Credit.
If you already initiated your ADP account, you should have received an activation code from your Account Manager. Use the following steps to enter your code and activate this service.
Click Activation (top right), enter your activation code and then click Submit.
Once activated, go to Admin > Organization to select which location(s) the feature should be turned for. You may choose to either apply this feature to All Locations or Selected Locations in your hiring system.
To activate in all locations, select the top-level location and at the bottom enter your ADP credentials, select to apply your credentials to all locations and click Submit. This will apply your credentials to all locations in your organization.
Alternatively, you may activate ADP using multiple sets of credentials. To add multiple credentials, first do not check to apply your credentials to all locations. You can then edit each location in your Organization and enter the appropriate credentials.
Configure the system by entering the ADP-provided Location Number in each location/department of your Org Chart.
Once the appropriate locations are activated, you must then turn on the Tax Credit element in your job postings. To activate the element, edit your position and on Step 2. add the Tax Credit element. Save your position then repost and all applicants from that point forward will be required to complete the tax credit questionnaire.
Once an applicant completes ADP’s interactive tax credit questionnaire as part of the initial job application, authorized users of the ADP’s Work Opportunity Tax Credit module can view the results of the questionnaire in the individual’s Applicant File.
Step #1 – Review Questionnaire Results
Tax credit results will be displayed as Eligible, Ineligible, or OPTOUT in the header section of the Applicant File:
- An ‘Eligible’ status means the applicant may qualify for a tax credit. You must take action to hire the applicant in order to initiate the forms needed to apply for the tax credit (see steps below)
- An ‘Ineligible’ status means the applicant does not qualify for a tax credit and therefore, no other action is required.
- An ‘OPTOUT’ status means the applicant elected not to answer the questionnaire and therefore, no other action is required.
Step #2 – Submitting Tax Credit Forms
Once you click the Hire button in the applicant’s file, an outbound email will appear, along with the following required fields:
- Hourly Rate - enter the rate of pay that the applicant is to receive.
- Unit Number - this will auto-populate the appropriate location's Unit Number.
- Job Title - select a job title from the drop-down list that most closely matches the title of this job posting.
- Job Title Screening Date - this will auto-populate the applicant's applied date, but can be edited.
- Job Offer Date - this will auto-populate the date the hire email is sent but can be edited Employment.
- Start Date - enter the date the employee is expected to begin work.
After all the above fields are complete, click the Send button to send the “hire email” notification to the applicant.
Next, click the Tax Credit Forms sub-button that appears below the Hire button. In this section, you will find a full set of instructions along with additional links to ADP documents.
In most cases, you will find no further action is required on your part, as the tax credit forms were electronically signed and have been transmitted to ADP for final processing. In some cases, however, simply follow the instructions, download/print the forms, and mail the completed forms to ADP.
Once ADP receives the completed and signed forms, it will investigate the information on the forms in order to validate the applicant’s claims.
Finally, upon validation, ADP will send the tax certification to your organization.