Financial Glossary
Form 8850 (Work Opportunity Tax Credit Pre-Screening Notice)
Form 8850, the Pre-Screening Notice and Certification Request for the Work Opportunity Credit, is the IRS form employers use to begin the process of claiming the Work Opportunity Tax Credit (WOTC). It is completed around the time a job offer is made to screen whether a new hire belongs to a targeted group, such as certain veterans or recipients of specified assistance programs. The employer then submits it to the state workforce agency for certification within the required window.
Problem & Application
Hospitality and campground operators that hire seasonally and at volume are often exactly the employers who can benefit from WOTC, since the credit rewards hiring from targeted groups. Form 8850 is the gatekeeping step, and missing the submission deadline forfeits the credit entirely no matter how eligible the hire was. Building the pre-screening into the onboarding workflow is what turns the credit from theory into dollars.
In Short
Form 8850 is the first move in capturing the Work Opportunity Tax Credit, and timing is everything. Screen at hire and file with the state on time, or the credit is lost.