The Work Opportunity Tax Credit (WOTC) is currently in a hiatus, awaiting congressional reauthorization. For many employers, this kind of pause raises more questions than answers. Should you continue submitting applications? What happens to your tax credits in the meantime? Is it worth the effort if the program hasn’t been renewed?
Let’s explore what employers commonly get wrong during a WOTC pause—and how to stay compliant and prepared.
The Most Common Missteps We See
- Stopping WOTC Screening Altogether
Some employers assume a pause means a full shutdown. They suspend screening new hires or stop collecting required forms, thinking they’ll “wait and see” what happens in Washington. Unfortunately, WOTC doesn’t work that way. Retroactive renewal is only possible if you meet all current compliance requirements—including timely screening. - Delaying Submissions
Others slow their process due to confusion, only to realize too late that the IRS’s 28-day rule still applies. If you don’t file Form 8850 and related documents within 28 days of a hire’s start date, that opportunity is lost, even if WOTC is reauthorized later. - Misinterpreting the Pause
Many believe that because certifications are temporarily on hold, the rest of the WOTC process is, too. In fact, most states continue to process applications, verify documents, and issue supporting requests. The only step paused is the final certification. - Over-reliance on Automation
Tools and platforms that help with form collection are useful—but only if someone is actively monitoring the process. Employers relying solely on automated systems often miss crucial verification steps or fail to follow up on documentation requests.
What Smart Employers Do Instead
WOTC is a compliance-driven program that rewards consistency. During a hiatus, the smartest employers keep their systems running just as before, no corners cut, no skipped steps.
At MJA & Associates, we help employers do exactly that. Our team manages every detail of your WOTC program, including:
- Continuing to screen all eligible hires
- Collecting and verifying supporting documentation
- Meeting all submission deadlines
- Responding to state requests and needs letters
- Staying on top of shifting legislative updates
This proactive approach ensures that no opportunity is lost, and your organization is fully prepared to take advantage of any retroactive tax credits once WOTC is renewed.
Stay the Course with Confidence
There’s no telling exactly when Congress will move to extend WOTC, but history tells us it likely will happen—and often with retroactive provisions.
If your business stops processing applications now, you could lose out later. But with the right partner, there’s no need to pause. MJA & Associates is here to help you stay compliant, ready, and informed—every step of the way.
