In today’s competitive labor market, maximizing available tax credits like the Work Opportunity Tax Credit (WOTC) is no longer a nice-to-have — it’s a strategic necessity. With major changes on the horizon and new expectations around candidate experience and hiring efficiency, businesses that fail to modernize their tax credit processes risk leaving significant money on the table.
Now is the time to ask: Is your current tax credit vendor positioned to keep you ahead — or are they holding you back?
The Evolving Work Opportunity Tax Credit (WOTC) Landscape
WOTC rewards employers for hiring individuals from targeted groups who face barriers to employment, offering a federal tax credit of up to $9,600 per eligible new hire under current law. However, that value is likely about to increase — dramatically.
Pending Legislation: H.R. 1177 and S. 492
In 2025, two bipartisan bills are advancing through Congress that will reshape WOTC:
- H.R. 1177 (Rep. Lloyd Smucker) proposes raising the credit from 40% to 50% of qualified wages, expanding credit caps, and eliminating restrictive eligibility rules for SNAP recipients.
- S. 492 (Sens. Bill Cassidy and Maggie Hassan) mirrors these enhancements, further incentivizing the hiring of long-term unemployed workers and modernizing the program for today’s economy.
When passed, these bills will make WOTC even more valuable — but only for those employers prepared to act swiftly and maximize the new benefits.
If your current provider is operating under old models or lacks a plan for capturing these enhancements immediately upon enactment, you could lose out on tens — or hundreds — of thousands in additional credits.
Why Integration and Candidate Experience Are No Longer Optional
Today’s workforce expects a fast, intuitive onboarding process. Complex, disjointed tax credit questionnaires are a red flag — both for candidates and HR teams under pressure to fill roles quickly.
If your WOTC process isn't fully integrated into your HRIS or ATS, you're at a competitive disadvantage.
Benefits of seamless integration include:
- Higher candidate completion rates, capturing more eligible hires.
- Faster hiring processes that align with candidate expectations.
- Greater credit volume, achieved without adding friction to recruiting workflows.
- Reduced compliance risks through automation and accuracy.
Employers that fail to modernize their WOTC screening through HRIS/ATS integration will fall behind — missing eligible credits, frustrating candidates, and overburdening internal teams.
Why Now Is the Time to Change
If your current vendor:
- Hasn’t proactively discussed the impact of H.R. 1177 and S. 492,
- Can’t demonstrate seamless HRIS/ATS integration capabilities,
- Or is still using outdated, manual WOTC processes,
You are at risk of missing the full financial and operational benefits of WOTC's new era.
Switching to a forward-thinking vendor now ensures:
- You’re ready the moment legislation passes.
- You capture maximum credit values from day one.
- You offer a candidate-centric experience that strengthens hiring and retention.
- You stay ahead of compliance risks in an evolving regulatory landscape.
Why Maximus
Maximus has spent over four decades helping businesses maximize government incentive programs.
We offer:
- Real-time readiness for WOTC legislative changes.
- Custom HRIS and ATS integrations that fit your existing systems.
- End-to-end WOTC management, from candidate screening through certification.
We don't just administer tax credits — we help you turn them into a competitive advantage.
Conclusion
The clock is ticking.
Pending legislative changes and rising candidate expectations demand a modernized approach to WOTC — and that means evaluating whether your current vendor is truly keeping pace.
Don’t wait for legislation to pass — by then, it will be too late to catch up.
Position your organization for success today by partnering with a vendor who can help you maximize every opportunity, streamline your hiring process, and secure a stronger financial future.
Contact Maximus now to learn how we can help you modernize your tax credit strategy for 2025 and beyond.
