Unlock Hidden Savings with the Work Opportunity Tax Credit (WOTC)

Hiring great employees is already a win for your business — but what if those hires could also help reduce your tax liability?

The Work Opportunity Tax Credit (WOTC) is a federal tax credit program designed to encourage employers to hire individuals from certain targeted groups who face barriers to employment. For eligible businesses, these credits can add up quickly and create meaningful savings.

At Ahola, we help simplify the WOTC process through streamlined onboarding technology, HR support  and partnerships with trusted specialists, making it easier for employers to identify opportunities and capture available credits.

What Is the Work Opportunity Tax Credit?

The Work Opportunity Tax Credit (WOTC) is a federal hiring incentive administered by the U.S. Department of Labor and the IRS. Employers may qualify for tax credits when hiring individuals from eligible groups, including:

• Veterans
• SNAP (Supplemental Nutrition Assistance Program) recipients
• Long-term unemployment recipients
• Individuals referred from vocational rehabilitation programs
• Certain recipients of government assistance
• Summer youth employees in designated communities

The credit is based on wages paid during the employee's first year of employment and may provide meaningful tax savings for qualifying businesses.

How Much Could Your Business Save?

Many employers are surprised to learn that the Work Opportunity Tax Credit can provide federal tax credits ranging from $2,400 to $9,600 per eligible new hire, depending on the employee's qualifying category and employment circumstances.

For businesses with ongoing hiring needs, these credits can add up quickly and create meaningful savings that can be reinvested into growth, employee development, technology, or other strategic initiatives.

In some cases, unused WOTC credits may be carried forward for up to 20 years, providing additional long-term value for qualifying employers.

Why WOTC Opportunities Are Often Missed

Although the savings can be substantial, many employers never claim available credits.

The reason is simple: timing and paperwork. 

Eligibility screening must occur early in the hiring process, and employers generally have only 28 days from an employee's start date to submit the required certification paperwork. Without the right systems in place, valuable tax credits can easily be overlooked.

Simplifying WOTC with Onboarding Technology

Our Applicant Tracking and Onboarding Software helps streamline hiring and onboarding while supporting the WOTC screening process. By incorporating eligibility questions into the onboarding workflow, employers can identify potential tax credit opportunities as part of the hiring experience instead of relying on manual processes later.

Benefits include:

• Automated onboarding workflows
• Streamlined WOTC screening
• Reduced administrative burden
• Improved documentation and recordkeeping
• Greater visibility into available tax credit opportunities
• A more efficient hiring process

Why Ahola Partners with RetroTax

At Ahola, we believe in connecting clients with the right resources to help them succeed. That's why we partner with RetroTax, a company that specializes in tax credit administration and WOTC processing.

• Evaluate new-hire process
• Required WOTC documentation
• Supporting information to state agencies
• Calculate available tax credits
• Audit-support documentation

Don't Leave Tax Credits on the Table

One of the biggest challenges with WOTC is awareness. Many employers simply don't realize they may qualify for tax credits through hires they're already making.

With Ahola's onboarding technology and our partnership with RetroTax, businesses can streamline hiring, reduce administrative complexity, and uncover potential tax savings opportunities that might otherwise be missed.

 Explore Ahola's Applicant Tracking & Onboarding Software. Need HR guidance? Learn more about Ahola's HR Consulting Services

Ready to learn how Ahola can help simplify hiring and identify WOTC opportunities for your business? Contact Ahola today.