The Work Opportunity Tax Credit (WOTC) offers employers significant savings, up to $9,600 per eligible hire. Many companies understand the value of this federal tax incentive. Where they run into trouble is managing the timing requirements that determine whether credits can be claimed.
We work with employers who hire from eligible target groups regularly. They’re doing everything right when it comes to building their teams. The challenge comes down to documentation and filing windows. When those get missed, valuable tax credits simply can’t be recovered.
Understanding WOTC Timing Requirements
The work opportunity tax credit process has specific checkpoints that employers need to meet:
Screen for eligibility before or on the start date. WOTC eligibility needs to be determined when the employee begins work. This is when you identify whether a new hire falls into one of the qualifying target groups.
Submit IRS Form 8850 within 28 days. After the hire date, you have 28 days to file Form 8850 with your State Workforce Agency. This is a firm deadline that the IRS enforces.
Maintain a consistent screening process. When WOTC screening happens sporadically, eligible hires slip through unidentified.
For HR teams managing recruitment, onboarding, compliance, and daily operations, tracking these deadlines for every new hire presents a real operational challenge. The busier the hiring cycle, the easier it becomes to miss the window on credits.
The Impact of Missed WOTC Opportunities
WOTC operates differently than some other business tax incentives. There’s no retroactive filing option. Once the 28-day filing window closes, that credit opportunity is permanently lost for that hire.
This becomes particularly significant in industries with regular hiring volume. Retail, hospitality, healthcare, and logistics companies often bring on numerous employees throughout the year. When deadlines get missed across multiple hires, the financial impact compounds quickly. Even a small percentage of missed filings can translate to substantial unrealized savings annually.
A Streamlined Approach to WOTC Management
Universal Background Screening (UBS) partnered with VerifyToday to create a managed WOTC solution that integrates directly into your hiring workflow. The system handles eligibility screening, form submission, and deadline tracking automatically for every new hire.
Here’s how it works in practice:
Automated deadline management. The system tracks filing windows and handles form submissions to meet the 28-day requirement for every eligible hire.
Performance-based pricing. There are no upfront program costs. Fees apply only when credits are successfully captured on your behalf.
Typical credit values. Most WOTC credits range from $1,200 to $2,400 per eligible hire, with certain target groups qualifying for credits up to $9,600.
Real-time program visibility. Access dashboards that show your hiring activity, pending certifications, and credit capture rates throughout the year.
Aaron Charbonnet, Chief Revenue Officer at UBS, explains the approach: “We’re helping companies capture tax savings they’re already entitled to through their normal hiring activities. It’s about making sure the administrative requirements don’t become a barrier to claiming those benefits.”
Taking the Next Step
WOTC represents a genuine opportunity for cost savings, but capturing those benefits requires attention to specific timing and documentation requirements.
Download our WOTC Eligibility Checklist to evaluate your current process and identify where eligible hires might be going unidentified. Or request a free assessment to review your hiring patterns and potential tax credit opportunities.
