--- title: "Staffing Series Week 4: What Staffing Agency Owners Should Know About the Work Opportunity Tax Credit (WOTC)" description: Discover how staffing agencies can leverage the Work Opportunity Tax Credit to maximize savings and support hiring from targeted groups facing employment barriers. image: https://www.crradvisors.com/hubfs/AdobeStock_1876259626.jpeg --- [Skip to content](https://www.crradvisors.com/blog/staffing-series-week-4-what-staffing-agency-owners-should-know-about-the-work-opportunity-tax-credit-wotc#main-content) [![CRR](https://www.crradvisors.com/hubfs/CRR.svg)Homepage](https://www.crradvisors.com) - [Home](https://www.crradvisors.com) - [Services](https://www.crradvisors.com/services) - [Audit & Assurance](https://www.crradvisors.com/services/accounting-auditing) - [Business Valuation](https://www.crradvisors.com/business-valuation) - [Client Accounting + Advisory Services](https://www.crradvisors.com/caas) - [Private Client Services](https://www.crradvisors.com/private-client-services) - [Tax for Businesses](https://www.crradvisors.com/tax-services-business) - [Tax for Individuals](https://www.crradvisors.com/tax-services-individual) - [Transaction Advisory](https://www.crradvisors.com/transaction-advisory-services) - [Industries](https://www.crradvisors.com/industries) - [Blog](https://www.crradvisors.com/blog) - [About Us](https://www.crradvisors.com/about-us) - [Team & Careers](https://www.crradvisors.com/about-us) - [CRR Charitable Foundation](https://www.crradvisors.com/crr-charitable-foundation) - [Contact](https://www.crradvisors.com/contact-us) - [Client Tools](https://www.crradvisors.com/client-portal) - [Home](https://www.crradvisors.com) - [Services](https://www.crradvisors.com/services) - [Audit & Assurance](https://www.crradvisors.com/services/accounting-auditing) - [Business Valuation](https://www.crradvisors.com/business-valuation) - [Client Accounting + Advisory Services](https://www.crradvisors.com/caas) - [Private Client Services](https://www.crradvisors.com/private-client-services) - [Tax for Businesses](https://www.crradvisors.com/tax-services-business) - [Tax for Individuals](https://www.crradvisors.com/tax-services-individual) - [Transaction Advisory](https://www.crradvisors.com/transaction-advisory-services) - [Industries](https://www.crradvisors.com/industries) - [Blog](https://www.crradvisors.com/blog) - [About Us](https://www.crradvisors.com/about-us) - [Team & Careers](https://www.crradvisors.com/about-us) - [CRR Charitable Foundation](https://www.crradvisors.com/crr-charitable-foundation) - [Contact](https://www.crradvisors.com/contact-us) - [Client Tools](https://www.crradvisors.com/client-portal) ![Staffing agency employees having a team meeting](https://www.crradvisors.com/hs-fs/hubfs/AdobeStock_1876259626.jpeg?width=7936&height=5291&name=AdobeStock_1876259626.jpeg) Staffing # Staffing Series Week 4: What Staffing Agency Owners Should Know About the Work Opportunity Tax Credit (WOTC) ![Richard Daigle](https://www.crradvisors.com/hs-fs/hubfs/Daigle_Rich_NEW.jpg?width=48&height=48&name=Daigle_Rich_NEW.jpg) ![Mariya Tsanova](https://www.crradvisors.com/hs-fs/hubfs/Images/Company_Photos/Headshots/Tsanova_Mariya.png?width=48&height=48&name=Tsanova_Mariya.png) Richard Daigle, and Mariya Tsanova September 2, 2026 ### A Tax Credit Many Staffing Agencies Miss The Work Opportunity Tax Credit (WOTC) is a federal tax credit available to employers who hire individuals from certain targeted groups that face barriers to employment. Eligible groups can include qualified veterans, individuals receiving certain government benefits, formerly incarcerated individuals, and others identified by law. #### Why Staffing Agencies Should Pay Attention Because staffing agencies are constantly recruiting and hiring, they often have more opportunities than most businesses to identify WOTC-eligible employees, if they're set up to catch them. That's the catch: eligibility has to be evaluated at the point of hire. To claim the credit, employers must obtain certification that the employee belongs to an eligible group, which requires submitting Form 8850 to the appropriate state workforce agency within 28 days after the employee begins work. Miss that window, and the credit is generally unavailable no matter how clearly the employee qualifies. #### Practical Steps - Incorporate WOTC screening into onboarding, not as a follow-up step. - Train recruiters and HR personnel to recognize eligibility indicators early. - Track certification deadlines carefully; the 28-day window doesn't extend. - Work with your tax advisor to ensure proper documentation and credit calculation. #### Bottom Line The WOTC can provide meaningful tax savings while helping expand employment opportunities for individuals facing barriers to work. For an agency hiring at volume, a screening process that catches even a portion of eligible new hires can add up to real savings over a year. ## Share this post [mailto:https%3A%2F%2Fwww.crradvisors.com%2Fblog%2Fstaffing-series-week-4-what-staffing-agency-owners-should-know-about-the-work-opportunity-tax-credit-wotc](mailto:https%3A%2F%2Fwww.crradvisors.com%2Fblog%2Fstaffing-series-week-4-what-staffing-agency-owners-should-know-about-the-work-opportunity-tax-credit-wotc) ## Keep reading ### [![](https://www.crradvisors.com/hs-fs/hubfs/AdobeStock_808994683.jpeg?width=4823&height=2412&name=AdobeStock_808994683.jpeg) Transaction Advisory Banks Banking What the SBA's New Quality of Earnings Rule Means for Your Next Deal](https://www.crradvisors.com/blog/what-the-sbas-new-quality-of-earnings-rule-means-for-your-next-deal) ### [![](https://www.crradvisors.com/hs-fs/hubfs/AdobeStock_611296662.jpeg?width=5370&height=3027&name=AdobeStock_611296662.jpeg) Staffing Staffing Series Week 3: Understanding FUTA & SUTA Taxes](https://www.crradvisors.com/blog/staffing-series-week-3-understanding-futa-suta-taxes) [![CRR](https://www.crradvisors.com/hubfs/CRR.svg "CRR")](https://www.crradvisors.com) *"CRR" is the brand name under which CRR, LLP and Bridgepoint Alliance, LLC, doing business as CRR Advisors, offer professional services to its respective clients in an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable laws, regulations, and professional standards. 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