The Work Opportunity Tax Credit (WOTC) officially expired on December 31, 2025. While this expiration may sound final, the reality is more nuanced. The program has entered a hiatus period—a temporary legislative gap that has occurred before—and it’s one that employers need to navigate carefully.
If you’re wondering whether to continue your WOTC process during this uncertain time, the answer is simple: Yes, absolutely.
Don’t Let “Hiatus” Mislead You
A WOTC hiatus is not the end of the program. It’s a temporary lapse in formal congressional authorization, which historically has been followed by a retroactive renewal. In fact, WOTC has been renewed 13 times since its inception, often with provisions that apply the tax credit retroactively to hires made during the lapse.
But here’s the catch: you only qualify for retroactive credits if you submitted your forms on time.
What States Are Doing Right Now
Even without a federal certification authority during the hiatus, most State Workforce Agencies (SWAs) continue to accept and process WOTC applications. That means your paperwork doesn’t just sit in limbo; it’s being reviewed and logged.
Specifically, states are still:
- Accepting IRS Form 8850 and ETA 9061 submissions
- Issuing needs letters and follow-up document requests
- Verifying Employer Representative Declarations (ERDs)
- Reviewing and verifying uploaded supporting documentation
The only part of the process that’s on hold is the final certification or denial. Everything else continues to move forward. That’s why it’s critical to keep your WOTC process active and consistent.
Why the 28-Day Rule Still Applies
The IRS still requires employers to submit Form 8850 within 28 days of the employee’s start date—even during the hiatus. If you miss this deadline, you forfeit the right to claim the tax credit for that hire.
There is no way to go back later and fix missed submissions. If WOTC is renewed retroactively—as expected—you can only claim credits for the applications you filed on time during the pause.
Common Mistakes to Avoid
During previous lapses, we’ve seen well-meaning employers fall into costly traps:
- Halting screening or paperwork to “wait and see”
- Delaying submissions, assuming they’ll catch up later
- Trusting automated systems without oversight
- Assuming paused certifications mean the whole program is frozen
These mistakes can result in permanently lost credits that your business would otherwise qualify for.
MJA & Associates Is Helping Employers Stay Ready
At MJA & Associates, we’ve guided our clients through multiple WOTC hiatus periods. We specialize in contingency-based tax credit processing, meaning we don’t get paid unless you receive credits.
During this transition, our team is:
- Continuing to screen and qualify employees
- Submitting documentation within the required timeframe
- Responding to state requests for verification
- Advising clients on strategic tax credit planning
We’re here to ensure that your company remains compliant and positioned to receive every dollar it deserves—both now and when WOTC is renewed.
Need Help Navigating the WOTC Pause?
Whether you’ve used WOTC before or are just getting started, now is the time to take action—not pause.
Contact MJA & Associates to review your current process, understand your options, and protect your future tax savings.
