Payroll and HR services provider ADP is calling on Congress to incorporate a “legislative fix” as it considers renewal of the now-expired Work Opportunity Tax Credit (WOTC).

ADP supports renewal of the credit – meant to incentivize hiring certain marginalized individuals – but says it wasn’t serving the intended purpose. It is advocating for WOTC-eligibility screening earlier in the job application process to ensure the credit serves as a true incentive to hire certain applicants. Such a change, however, is not without risk.

WOTC Basics

The WOTC, which expired at the end of 2025, is a federal tax credit for employers that hire individuals from certain targeted groups who have consistently faced significant barriers to employment, such as veterans, SNAP recipients, and ex-felons. The credit is calculated as a percentage of a new hire’s first-year wages, provided the employee works a minimum number of hours.

To dig deeper, visit the original article on the Thomson Reuters blog.