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Unlock Hidden Payroll Dollars with WOTC
Turn a compliance headache into a repeatable source of savings. WOTC can deliver up to $9,600 per qualified new hire when captured correctly.
The Missed Opportunity
Most companies are leaving free money unclaimed and don't even know it. Your payroll system should do more than pay people—it should surface hidden dollars through the Work Opportunity Tax Credit (WOTC).
Many teams rely on manual steps or tools that don't support the process end-to-end. Late filings forfeit the credit forever, with no appeal and no second chance. The result? Thousands of dollars per employee left behind and a recurring drain on profit that compounds year after year.
The opportunity is significant, but the window is tight. Without the right systems in place, even the most diligent HR teams struggle to capture these credits consistently.
$9.6K
Maximum Credit
Per qualified hire
28
Day Window
To submit Form 8850
WOTC in Plain English
What It Is
A federal tax credit for employers who hire people from targeted groups that face barriers to employment. The credit rewards companies that provide opportunities to workers who historically experience challenges entering or re-entering the workforce.
Examples of Target Groups
  • Veterans, including disabled veterans
  • Recipients of TANF or SNAP benefits
  • Individuals with felony convictions hired within one year
  • Residents of empowerment zones or rural renewal counties
  • Vocational rehabilitation referrals
  • Summer youth ages 16-17 in empowerment zones

Credit Size: Usually 25-40% of eligible wages based on group and hours worked. Maximum can reach $9,600 per hire for long-term family assistance recipients or qualified veterans.
The Critical Catch: Timing Is Everything
1
Day 1
Employee start date begins the clock
2
Day 28
Final deadline to submit Form 8850 to state workforce agency
3
Day 29+
Late submissions rejected with no appeal—credit lost forever
4
After Certification
Claim credit with Form 5884 or 5884-C
The 28-day window is absolute and unforgiving. Holidays, weekends, and system outages don't extend the deadline. Once you miss it, that credit is gone permanently—there are no exceptions, appeals, or workarounds. This is why automation isn't just convenient; it's essential for consistent capture.
What Missing the Window Costs
01
Company hires 20 people in a year
02
Assume 30% qualify
03
6 qualifying hires Ă— $5,500 average
Using average credit value per employee
04
$33,000 in one year
05
Over 5 years: $165,000+

This is not a small leak. It's a recurring drain that could fund technology projects, training programs, team development initiatives, or strategic investments in your workforce.
What Your HCM Should Do Automatically
Modern payroll and HR systems should handle WOTC end-to-end, eliminating manual work and missed deadlines. Here's the complete automation blueprint:
Pre-Screening in Onboarding
Embed 8850 questions directly inside offer acceptance and day-one flows, or integrate with your ATS for seamless data capture.
Smart Deadline Control
Live timers and automated alerts as the 28-day clock runs. Escalations for at-risk hires ensure nothing falls through the cracks.
Submission Without Friction
Electronic or API filing to state agencies where available, with automated fallback to approved submission methods.
Real-Time Status Dashboard
View pending, certified, denied, and expired applications with a full audit trail for compliance and finance teams.
Wage & Hour Validation
Automatically confirm hours worked and retention thresholds so credits are fully earned and documented.
Credit Claiming & Finance Integration
Auto-generate Form 5884 support documentation and map entries directly to your general ledger.
Historical Credit Banking
Track unused credits and carryover windows with automated reminders before expiration dates.
Your WOTC Audit Playbook
1
Map the Journey
Trace the complete path from offer acceptance to first paycheck. Confirm exactly when and where Form 8850 is captured, who reviews it, and how it moves through your systems.
2
Look Back for Missed Dollars
Review 12-24 months of hires and audit on-time filing rates. Identify patterns in missed opportunities—specific locations, departments, or hiring surges where the process broke down.
3
Stress Test the Clock
Examine holiday start dates, mass hiring events, and multi-state scenarios. These edge cases reveal where your process is most vulnerable to breakdown.
4
Check Your State Processes
Match each state's submission method—portal, email, fax, or mail. Confirm backup procedures when primary systems fail or during peak periods.
5
Assign Clear Ownership
Name specific owners across HR, payroll, finance, and tax. Define handoff points, escalation paths, and accountability for each step of the process.
6
Model the ROI
Use your actual hire volume and a conservative 10% qualification rate. Automation typically pays for itself within 3-6 months and delivers returns for years.
Why Manual Tracking Fails
Common Pain Points
Too many handoffs across HR, payroll, and tax teams
Spreadsheets can't manage dozens of overlapping 28-day countdown clocks
No system-wide audit trail or compliance visibility
Peak hiring periods magnify every weakness in the process
Email-based workflows create bottlenecks and single points of failure
State-specific submission requirements add complexity
Costly Outcomes
Missed Credits
The biggest cost—thousands per employee lost forever with no recovery option
Heavy Administrative Time
Hours spent chasing forms, tracking deadlines, and reconciling submissions
Poor Compliance Visibility
Finance and tax teams lack real-time data for accurate planning and reporting
What Success Looks Like
When WOTC is managed properly with the right systems and processes, the results speak for themselves. Here's what best-in-class organizations achieve:
Capture Rate Above 85%
Consistently capture 85%+ of eligible credits through automated screening, deadline management, and submission workflows. Top performers reach 90-95% capture rates.
Submission Speed: 3-5 Days
Complete the entire process within 3-5 days of employee start date, leaving ample buffer before the 28-day deadline. This removes deadline pressure entirely.
Finance Alignment
Quarterly claims auto-prepared with clear audit support, proper GL coding, and documentation ready for tax filing. Finance teams have real-time visibility into credit pipeline.
Year-Over-Year Impact
Tens of thousands to hundreds of thousands of dollars returned to the business annually. Credits fund strategic initiatives and improve bottom-line performance measurably.
Take Action: Schedule Your WOTC Audit
We'll help you turn WOTC into a reliable savings engine. In a 15-minute audit, we'll review your current process, identify gaps, and quantify your opportunity.
What You'll Get:
  • Assessment of your current WOTC capture rate
  • ROI projection based on your actual hiring volume
  • Actionable recommendations for immediate improvement
  • System requirements and automation roadmap
Schedule Online
Book your 15-minute WOTC audit at a time that works for you.
Talk with us
Call or Text: 914-500-9036 or 616-409-3950
Email: Casey.Friedricks@nexroll.io

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