ADP SmartCompliance for Tax Credits Overview

ADP SmartCompliance for Tax Credits, previously known as ADP WOTC (Work Opportunity Tax Credits), is a Federal Tax Credit program available to all companies regardless of size or industry, except non-profits. The program is designed to stimulate employment opportunities for people who typically experience certain barriers to employment, such as military veterans, public assistance recipients, and other specific groups. ADP SmartCompliance allows clients to see if a company is eligible for the credit based on hiring.

In this article:
ADP SmartCompliance for Tax Credits Overview
ADP SmartCompliance for Tax Credits Setup
ADP SmartCompliance Functionality
ADP SmartCompliance- Viewing the Pre-Hire Eligibility and Post-Hire Status
F.A.Q.

ADP SmartCompliance for Tax Credits Overview

ADP SmartCompliance allows organizations to claim a tax credit if they hire an individual who is in a WOTC-targeted group. ADP SmartCompliance streamlines the candidate application workflow by providing a clear view of screening results within the candidate's profile and enabling timely notifications when a qualified candidate is hired.

Benefits

1. ADP’s tax screening service helps organizations maximize their capture of eligible tax credits and simplifies the process for applicants and hiring managers.
2. Candidates have an easier experience with the simplified questionnaire for a faster response.

Permissions

• To set up ADP SmartCompliance for Tax Credits in ClearCompany, you will need the HR Admin + User Admin Permissions.
• Users with the Recruiter or Hiring Manager permission can see the Pre-Hire Eligibility, Post-Hire Eligibility, and Send the Hire to ADP.
• Users who have access to the candidate’s profile can see the Tax Credits section of the profile.

ADP SmartCompliance for Tax Credits Setup

Set up & Enablement

To set up the integration, organizations will need to take the following steps.

1. Purchase the ClearCompany Connector for ADP SmartCompliance® Tax Credits from the ADP Marketplace.
2. Once completed, organizations will receive their WOTC Org ID/URL from their ADP WOTC Representative.
3. Once you have received the WOTC Org ID/URL Suffix codes, email them to ClearCompany.

ClearCompany Setup - Work Opportunity Tax Credit (WOTC)

ADP must be notified when organizations hire a candidate if the organization would like to take advantage of the eligible tax credit. The process will automatically notify ADP based on the event selected during the integration process. Organizations can make changes if they decide they would like to manually send the information to ADP from the candidate profile. To view or change the event used to trigger the process, see below.

1. Navigate to Tools > Setup, and click Requisitions.
2. Navigate to Work Opportunity Tax Credit (WOTC) Hire Call Event Trigger.
3. Organizations have the following options:
   1. Onboarding Packet Completion: When the onboarding packet is completed, ClearCompany will automatically send the WOTC information to ADP.
   2. Hired Workflow Stage: When the candidate is moved to the "Hired" workflow stage, ClearCompany will automatically send the information to ADP.
   3. None: Clients will have to manually send the information to ADP. Learn how to do so below.

Note:

When adding a new WOTC, selecting the Set as Default will allow the WOTC ID to be added to existing requisitions and requisition templates as a default.

Adding ADP SmartCompliance to Applications

Once the appropriate automation settings are selected, organizations can add the ADP WOTC section to the desired applications to ensure the necessary information is sent.

Note

Before adding the ADP WOTC Redirect section to applications, we strongly recommend creating a test application to start. This test application can be used with a test requisition to apply as a candidate and familiarize yourself with the ADP WOTC integration.

1. Click Tools and then Setup.
2. Click Applications in the bottom left-hand corner of the Setup page.
3. Click New Apply Process to create a new application or click an existing application to edit.
4. In the Initial or Detailed section of the application, scroll down to the bottom of the application until you reach the button ADD CUSTOM SECTION.
5. Click ADP WOTC Redirect.
6. Click Move Up to move it to the appropriate section - it's recommended to move the section before the signature section.
7. Click Save & Close when you're finished making any additional edits.

Adding ADP SmartCompliance to Requisitions

When creating a requisition, users will see the new WOTC option.

1. Click on the Tools menu and then click Recruiting.
2. On the Requisitions tab, click Create Requisition in the upper right-hand corner of Requisitions. Select either Simple Form or A-Method from the dropdown menu. You can use either method when creating a requisition.
3. Under the Apply Process box, ensure the application containing the ADP WOTC Redirect is selected and the section is enabled.
4. Once the application is selected, when you reach the Administrative Info box in the requisition field, “ADP WOTC Organization ID.” Place the specific ADP WOTC Organization ID (URL Suffix) that you would like the applicant to be placed under in ADP. 
5. Finish completing the remaining requisition fields and posting options.

ADP SmartCompliance Functionality

Functionality

Process

When a candidate completes an application with the ADP WOTC Enabled, they will be redirected to the WOTC form. After completing the application, a user can navigate to the candidate profile where they will be able to see the Pre-Hire Eligibility, Post-Hire Eligibility, and Send the Hire to ADP (if None is selected as the trigger). The statuses below will indicate the next steps. Not-Screened: The candidate did not complete their entire application, including the WOTC redirect section, or ClearCompany did not accurately receive the status from ADP once the WOTC survey was complete. Not-Eligible: The candidate either answered the WOTC Survey questions in a way that makes them ineligible or the candidate opted out of the WOTC Survey. Eligible: Based on the information submitted, the candidate is eligible for the credit. Accepted: Displayed when the information is sent to ADP and the information has been accepted and received by ADP. Error: An error can appear if the candidate already exists in the client ADP Payroll. This is determined by their Social Security Number. If the candidate is eligible for the credit, the ADP WOTC integration will automatically notify ADP of the candidate. ClearCompany will receive the Post Status, which can be seen from the candidate profile. Organizations can resend the form to candidates if they would like them to still complete the application and credit form.

Notify ADP WOTC of Hire - Manually

1. Navigate to the candidate's profile and scroll down to the Work Opportunity Tax Credit (WOTC) section.
2. Click WOTC Actions to the right of the section header, then click Notify ADP WOTC of Hire.
3. The Post-Hire Eligibility field will display the status of the candidate’s eligibility once the data is successfully sent to ADP.

Field Send Over to ADP WOTC

The following fields are sent from ClearCompany to ADP:

Fields	Source
WOTC Org ID	This ID is provided to ClearCompany by the ADP WOTC Team during setup. It is then placed in your ClearCompany Account under Tools> Setup> Requisitions.
Job Offer Date	This is the date that an offer letter was sent to a candidate. If an offer letter was not sent to a candidate, or the client does not use our Offer Letter functionality, ClearCompany will send the Hire Date instead.
Hire Date	This is the latest hire date/most recent hire date on the User Profile.
Start Date	This is the latest hire date on the User Profile.
Working Location	This is the ADP ID of the office selected on the requisition for which the candidate is being hired.
Job Title	ClearCompany will pass the name of the requisition.
Pay Rate	This is the rate that is listed in an offer letter.
SSN	This is the SSN system field on the onboarding record.

Candidate Experience

When a candidate applies for a position at an organization with the ADP SmartCompliance (WOTC) integration enabled, the application will redirect them to complete the Work Opportunity Tax Credit Form. Once they are finished with the form, they will be redirected back to ClearCompany to complete the application. Below is a guide to the candidate experience.

1. Application Redirect - When a candidate reaches the page where the ADP WOTC form lives, they will see the screen below letting them know they will be redirected.
2. WOTC Questionnaire - They will then see the first part of the WOTC form.
3. WOTC Questions - Candidates will then have to answer some questions that determine their eligibility.
4. Submit Form - When candidates have finished the questions, they submit the form.
5. Sign the Form - Candidates then have to sign the form confirming that the information they have provided is accurate.
6. Confirmation - Once they have signed the form, they will receive confirmation that the WOTC form has been completed. Clicking Done will redirect them back into ClearCompany to finish the application.
7. ClearCompany Agreement - Depending on the setup of the application, they will fill out the rest of the fields needed.
8. Application Submitted - Candidates then receive confirmation of the application’s successful submission.

ADP SmartCompliance- Viewing the Pre-Hire Eligibility and Post-Hire Status

Viewing Pre-Hire Eligibility

A user can navigate to the candidate profile and see the candidate's Pre-Hire Eligibility.

1. Search for the candidate's profile by going to the requisition or by searching for their name.
2. In the Work Opportunity Tax Credit (WOTC) section, the Pre-Hire Eligibility field will display the status of the candidate’s eligibility. 
   • This status is based on the information provided during the WOTC re-direct portion of the application process. 

Viewing Post-Hire Status

After the information is sent, a user can navigate to the candidate profile and see the candidate's Post-Hire Eligibility.

1. Search for the candidate's profile by going to the requisition or by searching for their name.
2. In the Work Opportunity Tax Credit (WOTC) section, the Post-Hite Eligibility field will display the status of the candidate’s eligibility.
   • This status is based on the information provided during the WOTC re-direct portion of the application process.

Resending the ADP WOTC Form to an applicant

When an applicant has not completed the form, the status will be displayed that there are no work opportunity tax credits associated with the candidate. Users can resend the form to candidates to complete.  By navigating to the candidate profile and under WOTC Actions, the WOTC form can be resent by selecting "Resend to candidate for completion."

F.A.Q.

Can ADP WOTC Screening be a required part of the application?

If ADP WOTC has been placed in the application and is enabled for that particular requisition, it is required. The applicant cannot continue to the next page of the application without being redirected to the ADP WOTC survey, where they can opt out or complete the questionnaire.

What is the impact if I do not have ClearCompany Onboarding?

1. ADP will need to set up an NHEF (New Hire Employee File Transfer) on their end. This file will pull from their new employee data to gather all the necessary information for getting Work Opportunity Tax Credits.
2. Candidates will complete the WOTC Screening during the application process, and their Pre-Hire Eligibility Status will appear on the candidate profile in ClearCompany.
3. You will not see “Notify ADP of Hire” from the candidate profile. Instead, ADP will run the NHEF once a week to know who was hired and their Post-Hire Eligibility Status.
4. You will not see the Post-Hire Eligibility Status in ClearCompany.

What is the impact if ADP is not notified of a hired employee?

If the organization opts to notify ADP about a hired employee outside of ClearCompany, this could impact how the records are processed for the WOTC credit. The processing of records is time-sensitive, and delays could lead to a potential loss of credit.

Are all applications and requisitions required to have WOTC?

No, it is not required that all applications and requisitions have WOTC; however, it is best practice for each application and requisition to have WOTC enabled.

Should the WOTC redirect section be placed on internal applications?

No. Existing employees are not eligible for Work Opportunity Tax Credits.

Are the answers to the WOTC Survey populated or stored in ClearCompany?

No. The WOTC Survey is part of the ADP Platform, and all the information is stored in the ADP WOTC system; therefore, all WOTC reporting must be done in ADP WOTC.

If an applicant is applying to multiple jobs, will they need to complete the WOTC Survey each time?

Yes. WOTC is screened with each job.