A few days ago, I got an e-mail from someone requesting my thoughts on Projectix. The e-mail said, “I would say it [is a] TMS program. Wouldn’t you?” A few e-mail exchanges later, I basically said that it was not a TMS system, it was an TAS system. This was actually being nice because when I worked with the produce a couple of years ago, it wasn’t even a decent TAS. However, I’m very glad I held off because after having done some research, they have definitely stepped up and have much more functionailty added recently. I’m sticking with my guns though… TAS does not equal TMS.
(U.S. centric post follows…)
What does all this have to do with Tax Screening you ask? Well, nothing really. It’s just that in my research om Projectix, I noticed a page on their website about tax credits.
What do tax credits have to do with TAS, HR or technology? In my opinion, tax credits have to be the least thought about process for HR professionals, and if your recruiting system/staff is not looking at this, then you’re losing huge money. There is already enough complaining about HR being a cost center.
There are 2 general types of credits: welfare to work (WTW) and work opportunity tax credits (WOTC). Please don’t kill me if I’m a little bit off here, but I’m not a tax accountant. WTW credits are what they sound like. Tax credits are offered any time you hire someone of a particular category. This could be a welfare recipient, a person of a certain age (usually young), etc. WOTC credits line up with what are called “empowerment zones.” If you have a location in an empowerment zone (federal or state) each hire you make could qualify you for a credit.
When we talk about credits, we are talking about an average of $3000 per hire. Some of these credits are one time. Others are annually renewable forthe employee. So lets say you have 10K employees and 10$ turnover. For the 1000 employees you hire in a calendar year, you could qualify for $3M in credits. Credits are also not tax deductions. That $3K is not a tax deduction, it is a credit to the bottom line.
So HR technology? Well yeah. A couple years ago, we would have had our tax departments runing around trying to get all this paperwork in to the government agencies. (in most cases you have 28 days from the date of hire to get the credit) The fact that there are now vendors offering to automate this stuff is great. I don’t know if RPO vendors are looking into this or perhaps already doing it, but it’s a great opportunity for outsourcing.