Simplify WOTC Compliance and Maximize Savings

WOTC is a federal program that provides a tax credit to employers who hire individuals from specific target groups facing significant barriers to employment. These target groups include SNAP recipients, TANF participants, long-term unemployment recipients, ex-felons, SSI recipients, designated community residents, vocational rehabilitation referrals and qualified veterans, including disabled veterans. Employers must complete the IRS Form 8850 and ETA Form 9061 for each eligible employee to begin the WOTC screening and pre-screening process before or on the new employee’s start date.

WOTC helps reduce an employer’s income tax liability by offering a credit ranging from $1,200 to $9,600 per qualified hire, depending on the target group and hours worked. Employers must submit certification requests to the State Workforce Agency within 28 days of the employee’s start date. Software solutions with WOTC screening capabilities can automate notifications, integrate with your ATS via API, and streamline reporting—improving your bottom line while remaining compliant. There’s no cap on the number of eligible employees you can claim.

Tax credit software automates the process of identifying, screening and tracking new hires who may qualify for federal, state, or local tax credits, such as WOTC. It guides HR teams through pre-screening WOTC target groups, captures required IRS and ETA forms and submits certification requests to the State Workforce Agency. The software supports documentation for eligible new hires from programs like the Supplemental Nutrition Assistance Program (SNAP), Supplemental Security Income (SSI), Temporary Assistance for Needy Families (TANF), rural renewal counties and empowerment zones.

The software helps reduce administrative work and improves tax credit capture rates, directly affecting your bottom line. It simplifies year-end reporting and improves the user experience by integrating with applicant tracking systems. CPA firms and in-house teams use it to manage tax credit compliance and track credits by hire date, target group and certification status—improving visibility and accuracy across the tax return cycle. isolved’s WOTC service streamlines this process, helping employers screen new hires during onboarding, verify WOTC Eligibility and capture available credits efficiently.

Tax credit software improves efficiency by automating WOTC screening, document management and submission workflows—reducing manual tasks and missed credit opportunities. It supports compliance with IRS and ETA form requirements and captures data for programs like SNAP, SSI, TANF and other WOTC target groups. The software helps identify eligible employees from rural renewal counties, empowerment zones and other designated areas.

It improves the accuracy of tax credit calculations, supports CPA collaboration and simplifies reporting for audits and year-end tax returns. Employers using tax credit software typically capture more WOTC benefits, reduce time spent per hire and improve the overall user experience for hiring managers. It can also contribute to meaningful tax savings that impact hiring budgets and workforce planning. With isolved’s automated WOTC screening and filing tools, your business can take full advantage of the program with minimal effort from your HR team.

To apply for the WOTC program, an employer must have the new hire complete IRS Form 8850 on or before the date of the job offer. The employer then submits that form along with ETA Form 9061 or ETA Form 9062 to the State Workforce Agency within 28 calendar days of the employee’s start date. These forms verify if the employee qualifies under one of the WOTC target groups, such as long-term unemployed, SNAP recipients or individuals from the healthcare industry facing employment barriers.

After submission, the state agency reviews the documentation and provides certification if the employee is eligible for the WOTC tax credit. Once certified, the employer claims the credit on their income tax return, with the amount depending on wages paid and hours worked. Tax credit software can automate this process, help meet submission deadlines and improve accuracy throughout the application process. isolved’s system helps you filter out ineligible hires, avoiding wasted effort and ensuring only qualified candidates are submitted for WOTC consideration.

Equifax is a global data, analytics and technology company that provides credit reporting and risk assessment services. It collects and maintains information on over 800 million consumers and 88 million businesses worldwide. Employers may recognize Equifax for services tied to employment verification, income validation and tax credit processing.

In the context of talent acquisition and WOTC Software, Equifax offers WOTC screening tools that automate the tax credit application process. Their solution competes with other providers that help HR teams screen new hires for eligibility, manage compliance documentation and process credits to reduce taxable income.