Gaining certification for WOTC candidates is vital to earning credit. So what do you do when your certification requests get stuck in pending?
Smart employers take advantage of the big tax benefits available through the Work Opportunity Tax Credit (WOTC). They understand that by recruiting applicants from WOTC’s nine targeted groups of disadvantaged job-seekers, they stand to improve their cash flow by upwards of 40%.
Few understand the full process of claiming WOTC from end-to-end, however. That’s because filing all the required paperwork, submitting any requested documentation, and complying with all other requirements mandated by your business’s state workforce agency can pose unexpected challenges–especially if you’re a business that hires in large volumes.
For that reason, business owners often ask us questions regarding WOTC certification requests left “pending” at state workforce agencies. This blog answers the most commonly asked questions on that topic.
How long does it normally take for state workforce agencies to process WOTC certifications?
The answer to this question may frustrate some, but there truly is no normal amount of time to wait for a WOTC certification from a state workforce agency. Factors that may contribute to the processing time of your WOTC certification request include:
- Your state or territory
- The current workload at your SWA
- The WOTC targeted group your candidate belongs to
- The accuracy and completeness of your request
That being said, it is rare for a WOTC certification to be issued in less than three weeks, or in more than 18 months.
My state workforce agency has been processing my WOTC certification request for over a year. Am I at risk of losing it?
Simply put: no. Your WOTC certification, once granted, will be applicable to your business tax income return, regardless of how long it takes your state workforce agency to process and issue it.
Can I apply WOTC credits to past or future tax years?
Can I amend past years’ tax returns to apply WOTC credits?
Yes. The IRS typically accepts amended up to three years after submission. Although amending a past year’s return in order to apply WOTC credits is possible, the question of whether or not it is the best strategy for your business can be complicated. If you are considering this route, we recommend carefully consulting a trusted tax professional.
Do some WOTC targeted groups take longer to gain certification than others?
Yes. The targeted group your WOTC candidate belongs to can greatly affect your certification request’s processing time at your state workforce agency. This is because some targeted groups require more documentation than others.
For instance, gaining certification for qualified veterans can take longer than most other groups. Don’t let this discourage you, though–veterans are also eligible for the highest credit amounts after certification is issued!
Do some state workforce agencies take longer to issue certification than others?
Yes. Each state workforce agency is independently operated. Because of this, there is considerable variation in processing times between each facility. Factors that can affect a particular SWA’s average processing time include:
- Internal resources
- Historical workload
- Current volume of certification requests
- The typical distribution of certification requests across targeted groups
- and more
What can I do to get WOTC certifications faster?
Our dedicated SWA Team gets our clients more WOTC certifications, faster.
But they’re only one part of our industry-leading solutions. From long-tenured tax attorneys to design-forward software developers, our entire team exists to help our clients get the most from WOTC and other employment tax credits.
If you’re ready to transform your business with WOTC, choose Arvo.