SUMMARY: The Work Opportunity Tax Credit (WOTC) is only guaranteed for employees who start work on or before December 31, 2025, and there is no confirmed extension for 2026 hires. Florida businesses, particularly those with high turnover, should act now to maximize potential tax savings.
This article explains WOTC’s current status and outlines six key steps employers should take before year-end, including improving screening, organizing documentation, training managers, and planning hiring to capture every eligible credit.
The Work Opportunity Tax Credit (WOTC) has helped many Florida businesses save money when hiring. But unless Congress acts, the credit will only apply to employees who start work on or before December 31, 2025. There is no guarantee it will be available for new hires in 2026.
For small and midsize employers in Florida, especially restaurants, hospitality, senior care, construction, and retail, now is the time to make sure you’re getting the most out of WOTC while it still exists.
This guide breaks down:
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- Where WOTC stands today
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- What may happen after 2025
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- What you should do before December 31, 2025
What WOTC Is And Why It Matters
WOTC is a federal tax credit for businesses that hire people from certain groups that face barriers to employment. Examples include:
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- Some veterans
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- People receiving SNAP or SSI
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- Long-term unemployed individuals
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- People referred from vocational rehab
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- Residents of empowerment zones
If a new hire qualifies and you follow the right steps, you may receive:
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- Up to 40% of the first $6,000 in wages, or
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- Up to $9,600 for certain veteran categories
For Florida businesses with steady hiring, this credit can add up to tens of thousands each year.
Where Things Stand Right Now
Here’s the current situation:
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- WOTC is approved only through December 31, 2025.
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- Congress has renewed it many times before, even retroactively, but nothing for 2026 has been passed yet.
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- Bills to improve or extend WOTC have been introduced but not signed into law.
Bottom line: The credit is available today, but not guaranteed for next year.
Why This Matters for Florida Employers
Many Florida industries hire large numbers of entry-level or seasonal workers. These are groups that often qualify for WOTC.
If you run a hotel, restaurant, landscaping company, senior care agency, retail shop, or similar business, you may already be hiring people who qualify, you just need to make sure you’re capturing the credit.
What You Should Do Before December 31, 2025
1. Plan Your Hiring
Think about how many people you expect to hire through the end of the year. Look at your past hiring patterns. How many employees came from groups likely to qualify for WOTC?
You’re not changing who you hire.
You’re making sure you don’t miss out if someone does qualify.
2. Tighten Your WOTC Screening Process
Many businesses lose the credit because forms aren’t turned in on time.
To claim WOTC, you must:
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- Have the employee certified by the State Workforce Agency
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- Submit IRS Form 8850 within 28 days of the employee’s start date
In Florida, WOTC is handled by FloridaCommerce, and credits typically range from $1,200 to $9,600 per qualifying employee.
Potential Action steps:
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- Add Form 8850 to every onboarding packet
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- Assign one person to collect and submit forms
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- Use a short checklist to avoid mistakes
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- Make sure your CPA or payroll provider knows who was certified
3. Train Your Hiring Managers
Managers should know:
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- They cannot ask applicants to disclose protected information
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- WOTC screening is voluntary and confidential
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- Filling out the form does not affect hiring decisions
Make sure they know how to explain the form simply and respectfully.
4. Track Hours and Wages
WOTC is based on how many hours the employee works:
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- 120–399 hours: You get 25% of first-year wages
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- 400+ hours: You get 40% of first-year wages
High-turnover industries often lose value because workers leave too soon. If someone is close to a threshold, a little extra retention effort can make a big difference.
Some Helpful Tips:
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- Flag WOTC-certified employees in your HR/payroll system
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- Set alerts for the 120-hour and 400-hour marks
5. Organize Your Documentation
Good recordkeeping protects you, even if the credit expires.
Make Sure You Keep:
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- Completed Form 8850s
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- State certification notices
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- Start dates, hours, and wages
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- Emails with Florida Commerce or your CPA
6. Prepare for Every Outcome in 2026
You can’t control Congress, but you can control your readiness.
If WOTC is extended:
You already have a clean process in place.
If WOTC expires:
You’ve maximized credits for 2025 hires and improved your hiring systems overall.
And if Congress brings it back retroactively (which has happened before), you’ll be prepared.
The Bottom Line for Florida Employers
Three things are clear:
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- WOTC is still available for employees who start work on or before December 31, 2025.
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- It can be worth thousands of dollars per hire, especially in high-turnover industries.
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- The biggest risk right now is doing nothing.
By planning your hiring, tightening your process, training your managers, and organizing your documents, you can make the most of WOTC while it’s still guaranteed.
References
Internal Revenue Service. (n.d.). Work Opportunity Tax Credit. https://www.irs.gov/businesses/small-businesses-self-employed/work-opportunity-tax-credit IRS
Internal Revenue Service. (2025, September 4). The Work Opportunity Tax Credit is available until the end of 2025. https://www.irs.gov/newsroom/the-work-opportunity-tax-credit-is-available-until-the-end-of-2025 IRS
U.S. Department of Labor. (n.d.). Work Opportunity Tax Credit (WOTC). https://www.dol.gov/agencies/eta/wotc DOL
Congress.gov. (2025, February 10). S. 492 – Improve and Enhance the Work Opportunity Tax Credit Act, 119th Congress (2025–2026). https://www.congress.gov/bill/119th-congress/senate-bill/492 congress.gov+1
