When your to-do list is long, focus on the things that will make the biggest impact
Imagine this: You’ve just wrapped up another busy month, hiring a few new team members to help your growing business. You’re feeling good about expanding, but as tax season looms, you’re starting to think about how much it’s all going to cost. Then, you remember something you’ve heard about but never really looked into: the Work Opportunity Tax Credit (WOTC).
Turns out, you could have been saving thousands of dollars by hiring the right people—and you might be able to claim those savings retroactively for employees you’ve already hired this year. It’s not too late to take advantage of this opportunity, and 2025 is the perfect time to start.
What is WOTC?
Simply put, WOTC is a tax break for businesses that hire and retain workers from specific groups. These groups include veterans, people with disabilities, ex-felons, and individuals receiving government assistance. When you hire someone from one of these groups, you can qualify for a tax credit—meaning the government will help reduce the amount of taxes you owe.
Depending on the group your employee falls into, the credit can be anywhere from a few hundred dollars to up to $9,600 per person. That’s real money that can go directly into your pocket or be reinvested into your business.
Who qualifies for WOTC?
The following are just a few of the groups of disadvantaged American job-seekers who qualify for WOTC.
1. Veterans
Especially veterans who have been out of work for a while or have a disability related to their service.
2. Ex-felons
People who have been convicted of a felony and are hired within a year of their release.
3. Public assistance recipients
Those who are receiving government support like food stamps or welfare.
4. Long-term unemployed
Anyone who has been unemployed for 27 weeks or more.
5. People with disabilities
Individuals who receive Supplemental Security Income (SSI).
And more
Hiring people from these groups not only helps your business save money, but it also provides them with opportunities to get back on their feet.
Start WOTC in 2025
There are a few reasons why 2025 is the year to start using WOTC.
1. WOTC is still available and still valuable
Despite many tax changes over the years, WOTC is still going strong in 2025. The credit remains a great way to lower your tax bill. If you’re hiring new employees in 2025, you can still claim up to $9,600 per eligible employee. That’s a significant saving for each person you hire, which can really add up if you hire multiple employees. This is one of the few tax incentives that continues to offer real savings, so it’s a great time to take advantage of it.
2. WOTC is for every business
WOTC is a valuable tax credit available to every business, but it can be tricky to navigate. While the process has become simpler, it still requires attention to detail—like screening hires and filing the correct forms.
The good news? You don’t have to do it alone. With some professional help, you can easily claim the credit without the hassle. In 2025, it’s an opportunity every business can take advantage of—whether you handle it yourself or get the support you need to make it easier.
3. Labor shortages continue
If you’ve been struggling to find workers, you’re not alone. The job market is tight, and hiring the right people can be tough. WOTC opens up a new pool of qualified workers who may be more eager to work than others. If you’re having trouble finding the right fit, this is a way to expand your hiring options and get tax savings at the same time. It’s a smart, win-win situation for your business.
4. Stop sunk costs
If you’ve never used WOTC before, you might have missed out on tax savings in the past. But here’s the good news: WOTC can be applied to past and future tax years, so the sooner you begin, the sooner you can begin recovering your losses. Stop leaving money on the table—get your WOTC program up and running now.
How to claim WOTC
The process for claiming WOTC is pretty straightforward.
1. Screen new hires
The first step is screening your new employees to see if they qualify for the credit. This requires getting them to fill out Form 8850 (Pre-Screening Notice) within 28 days of their hire date. While the form itself isn’t overly complicated, ensuring that you ask the right questions and gather all the necessary information can take time. If you miss this window or make an error, you could lose out on the credit altogether, so it’s critical to get it right
2. Submit forms
Once the form is completed, you must send it to your state workforce agency for review. Each state has its own process and requirements, which can vary. Some states may have online portals for submission, while others may require physical paperwork. This process can be slow, and it may take several weeks before you receive confirmation of whether your employee qualifies for the credit. In the meantime, you’ll need to keep track of any additional forms or requests from the state to avoid delays.
3. Claim your credit
After you’ve received confirmation from the state that your employee qualifies, the final step is to claim the credit on your taxes. This involves filling out Form 5884 and submitting it along with your annual tax return. The paperwork can be tricky, and missing even one step can result in delays or reduced credits. You’ll need to double-check everything, especially when it comes to calculating the exact credit amount based on the employee’s classification.
Start WOTC risk-free now
While claiming the WOTC might sound like a bit of paperwork, there’s an easy way to handle it without the stress. Our tech tools and personalized solutions make it simple and risk-free for small business owners to claim WOTC.
Here’s how it works:
Effortless screening
Arvo Tech takes care of the screening process for you, ensuring you never miss out on an eligible employee.
No upfront costs
With Arvo Tech, you only pay a small fee once you’ve actually received your tax credit. There’s no upfront cost, meaning it’s a risk-free solution.
Maximized profit
Arvo’s platform is designed to help you get the maximum credit available, ensuring you don’t leave any money on the table.
Simple process
Arvo Tech handles the paperwork and submission for you, so you can focus on running your business while they make sure you get the credit you deserve.
No worries
With Arvo Tech, you don’t have to worry about missing deadlines or managing complicated forms. We streamline the entire process, so you can start saving immediately without the hassle. It’s a win-win that makes claiming WOTC easier than ever.
Make 2025 legendary
If you’ve never taken advantage of WOTC, 2025 is the year to start. With tax incentives still available, an easier application process, and the potential to save money with every hire, there’s no reason not to begin.
Start screening your new hires for WOTC eligibility, claim those credits, and keep more money in your business. We’ll make the whole process simple and risk-free, so you can focus on what you do best—growing your business.