How WOTC Works for Employers
How WOTC Works for Employers
WOTC Plus helps employers understand what WOTC is and how the Work Opportunity Tax Credit process works, from new-hire screening and Form 8850 workflows to certification tracking, reporting, and hands-on support.
- Understand what WOTC is
- Screen new hires for potential eligibility
- Organize Form 8850 workflows
- Track certification status
- Prepare WOTC reporting for tax review
- Get full-service support from start to finish
What Is WOTC?
WOTC stands for the Work Opportunity Tax Credit. It is a federal hiring tax credit designed to encourage employers to hire individuals from certain targeted groups. For employers, WOTC can be valuable, but the process requires more than simply hiring an employee. Employers need a way to screen new hires, collect required information, organize Form 8850 workflows, submit certification requests, track certification status, and prepare reporting for tax-credit review. WOTC Plus helps employers simplify this process with automated WOTC screening, documentation workflow support, certification tracking, reporting, and hands-on support.
How Does WOTC Work?
The WOTC process usually starts when an employer screens a new hire for potential Work Opportunity Tax Credit eligibility. If the employee may qualify under one of the WOTC target groups, the employer must organize the required documentation and submit the certification request to the appropriate State Workforce Agency.
The process generally includes:
- New-hire WOTC screening
- WOTC questionnaire or survey completion
- Form 8850 workflow
- ETA Form 9061 or ETA Form 9062 documentation, when applicable
- State Workforce Agency certification review
- Certification tracking
- Reporting for payroll, finance, and tax teams
WOTC Plus helps employers manage these steps in a more organized and automated workflow.
Step 1: Screen New Hires
The first step in the WOTC process is screening new hires. Employers need to determine whether a new employee may fall into one of the Work Opportunity Tax Credit target groups.
WOTC Plus helps employers make screening easier by allowing new hires to complete a secure WOTC screening workflow during hiring or onboarding. This may include a WOTC questionnaire or survey designed to collect information related to potential eligibility.
A consistent WOTC screening process helps employers:
- Screen new hires earlier
- Reduce manual HR follow-up
- Improve completion consistency
- Keep screening information organized
- Support the next steps in the WOTC process
Step 2: Organize Form 8850 and Documentation
After screening, employers need to manage the required WOTC documentation. One of the key forms in the process is IRS Form 8850, also known as the Pre-Screening Notice and Certification Request for the Work Opportunity Credit. Form 8850 connects the screening process to the certification request. Depending on the new hire and the workflow, ETA Form 9061 or ETA Form 9062 may also be used as part of the certification documentation. WOTC Plus helps employers organize Form 8850 workflows and related documentation so the process is easier to manage, track, and report.
Step 3: Submit for State Workforce Agency Certification
WOTC certification requests are submitted to the appropriate State Workforce Agency. The agency reviews the information and determines whether the new hire is certified under a qualifying WOTC target group.
The WOTC process is time-sensitive, which is why screening and documentation should be built into the hiring or onboarding process instead of handled later as a year-end task.
WOTC Plus helps employers keep this workflow organized with automated screening, documentation support, submission workflow support, and certification tracking.
Step 4: Track Certifications and Status Updates
After submission, employers need visibility into application status. A WOTC process should not end when forms are submitted. Employers also need to know whether applications are pending, certified, denied, or require more information.
WOTC Plus helps employers organize certification tracking so HR, payroll, finance, and tax teams can better understand where applications stand.
Tracking may include:
- New hires screened
- Forms completed
- Certification requests submitted
- Pending applications
- Certified employees
- Denials or requests for more information
- Reporting status
Step 5: Prepare WOTC Reporting for Tax Review
Once certifications are received, employers need organized reporting so the appropriate tax professionals can review eligible credits. WOTC Plus helps employers prepare organized WOTC reporting for payroll, finance, and tax teams. This reporting may support review of certified employees, applicable wages, employee status, and documentation needed for tax filing coordination. WOTC Plus does not replace an employer’s tax advisor. Instead, WOTC Plus helps organize the WOTC workflow and reporting so employers and their tax professionals have clearer information to work from.
How WOTC Plus Simplifies the WOTC Process
WOTC Plus is designed to help employers manage the Work Opportunity Tax Credit process from start to finish. Instead of relying on manual forms, disconnected spreadsheets, or inconsistent follow-up, employers can use a more organized process.
WOTC Plus supports:
- Automated WOTC screening
- WOTC questionnaire and survey workflows
- Form 8850 workflow support
- ETA Form 9061 documentation support
- Batch filing and submission workflow support
- Certification tracking
- Payroll and hiring workflow coordination
- SMS and secure applicant outreach
- Organized WOTC reporting
- Hands-on support throughout the process
WOTC Plus helps employers manage these steps in a more organized and automated workflow.
Why a Clear WOTC Process Matters
Employers can miss WOTC opportunities when the process is handled manually, inconsistently, or too late in the hiring workflow.
A clear WOTC process helps employers:
- Screen new hires consistently
- Stay organized around required timelines
- Reduce manual paperwork
- Improve visibility into certification status
- Support payroll, finance, and tax teams with better reportin
- Make WOTC easier to manage across hiring locations or departments
WOTC Plus helps employers turn WOTC into a structured workflow instead of a last-minute paperwork task.
2026 WOTC Status Note
Federal authorization for the Work Opportunity Tax Credit expired on December 31, 2025. Some State Workforce Agencies may continue accepting and retaining WOTC applications for 2026 start dates pending possible federal reauthorization. Employers should continue following applicable screening and submission timelines and should consult their tax advisor regarding claim eligibility, filing strategy, and the impact of any future federal reauthorization.
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WOTC Plus helps employers manage the Work Opportunity Tax Credit process with automated WOTC screening, Form 8850 workflow support, certification tracking, organized reporting, and hands-on support.
What Is WOTC? FAQs
WOTC stands for the Work Opportunity Tax Credit, a federal hiring tax credit for employers that hire individuals from certain targeted groups.
WOTC generally works by screening new hires for potential eligibility, organizing required documentation, submitting certification requests to the appropriate State Workforce Agency, tracking certification status, and preparing reporting for tax-credit review.
WOTC screening should happen early in the hiring or onboarding process so employers can stay organized around required forms and submission timelines.
IRS Form 8850 is one of the key forms used in the Work Opportunity Tax Credit process. ETA Form 9061 or ETA Form 9062 may also be used as part of the certification documentation.
The appropriate State Workforce Agency reviews the certification request and determines whether the new hire is certified under a qualifying WOTC target group.
Yes. WOTC Plus helps employers organize WOTC screening, certification tracking, and reporting so HR, payroll, finance, and tax teams have clearer information to review.
No. WOTC Plus combines automated WOTC screening technology with hands-on support to help employers manage the process from screening through reporting.