Form 8850: The Key Tax Form Florida Businesses Shouldn’t Ignore
Running a small business in Florida means wearing a lot of hats, sometimes all at once. You’re juggling payroll, sales, customer service, maybe even mopping the floors at closing time. But here’s a hat many owners overlook: the one that saves you money on taxes. And that’s where Form 8850 comes in.
This IRS form may not sound exciting, but it’s directly tied to the Work Opportunity Tax Credit (WOTC), a powerful incentive that rewards businesses for hiring individuals from specific target groups. Think of it as the government giving you a pat on the back, and a tax break, just for making smart hiring choices.
In this guide, we’ll unpack what Form 8850 is, why it matters, how to file it correctly, and what small business owners in Florida should keep in mind.
What Is Form 8850?
Here’s the straightforward answer: Form 8850 (officially called the Pre-Screening Notice and Certification Request for the Work Opportunity Credit) is an IRS document that helps employers claim the WOTC.
When you hire someone who qualifies, like a veteran, someone who has received SNAP benefits, or a person long-term unemployed, you fill out IRS Form 8850 as the first step. This form lets the IRS and your state workforce agency know you’re requesting certification for the tax credit.
Put simply, it’s your entry ticket to getting a tax break for doing the right thing.
👉 You can read the IRS’s official description and get the current version of the form here: IRS Form 8850 PDF.
Why Should Florida Businesses Care ?
Taxes are one of the biggest pain points for small businesses. Between sales tax, payroll tax, and federal income tax, it can feel like you’re constantly writing checks. But here’s the thing, every dollar saved is a dollar you can reinvest.
And with Form 8850, those savings aren’t just pocket change. Businesses can receive up to $9,600 in tax credits per qualified hire.
Think about that for a second:
- Hire 3 qualified employees in a year = potentially $28,800 in savings.
- Hire 10 = almost $100,000 back in your pocket.
For Florida businesses operating in industries like hospitality, retail, or construction (where turnover is high), this tax credit can make a real difference.
Explore the industries we serve to see how credits like this could apply to your sector.
Do I Have to Fill Out Form 8850?
This is a question we hear a lot: “Do I have to fill out Form 8850?”
The answer depends on whether you’re seeking the WOTC. The form isn’t mandatory for every hire. But if you want to claim the tax credit, then yes, you need to complete Form 8850 and submit it within 28 days of the new employee’s start date.
Miss the deadline? The credit is gone. And the IRS doesn’t make exceptions.
So technically, you don’t have to fill it out. But financially? You’d be leaving money on the table if you don’t.
The Two-Part Process
Here’s the kicker: filling out IRS Form 8850 alone isn’t enough. It’s part of a two-step process.
| Step | Form | Agency | Purpose | Deadline |
|---|---|---|---|---|
| 1 | Form 8850 (Pre-Screening Notice) | IRS / State Workforce Agency | Lets the IRS and your state know you’re requesting certification for the Work Opportunity Tax Credit | Must be submitted within 28 days of the employee’s start date |
| 2 | ETA Form 9061 (Individual Characteristics Form) | Department of Labor (DOL) | Provides detailed information about the new hire to confirm WOTC eligibility | Submitted together with Form 8850 to the state workforce agency |
Together, these forms confirm eligibility and lock in your credit. If you skip either one, your claim falls apart.
It’s like forgetting to sign the back of a check, technically you’re close, but you won’t see the money until you do it right.
Step-by-Step: How to Fill Out Form 8850
Filling out IRS forms isn’t anyone’s idea of fun, but let’s make this simple:
- Employee Info – The new hire completes their portion on or before the job offer date.
- Employer Info – You, as the employer, fill out your section.
- Submission Deadline – Send it to your state workforce agency within 28 days.
And that’s it. No need to overcomplicate it.
But here’s where businesses get tripped up: the timing. Miss the 28-day window and the IRS won’t give you the credit, no matter how qualified the employee is.
If you’d like a hand ensuring your forms are handled on time, book your appointment with our team. We’ll walk you through the process.
Who Qualifies ?
The WOTC program covers a wide range of groups. That means you have multiple chances to qualify. Here are the main ones:
- Veterans (including those unemployed or with service-related disabilities)
- Individuals receiving SNAP (food stamp) benefits
- People on long-term unemployment
- People with felony convictions re-entering the workforce
- Residents of certain targeted communities
- TANF recipients
For small businesses in Florida, industries like restaurants, hotels, and construction often employ people who fall under these groups.
So yes, chances are high that you already have or will soon hire someone who qualifies.
Common Mistakes Businesses Make with Form 8850
Even though it’s not complicated, small mistakes can derail your credit claim:
- Filing late – Missing the 28-day deadline is the #1 mistake.
- Incomplete employee info – If the new hire doesn’t complete their part, the form is invalid.
- Confusing forms – Remember, Form 8850 alone isn’t enough. You also need ETA Form 9061.
The good news? With proper bookkeeping and payroll systems in place, you can avoid these errors. If you don’t already have a solid system, check out Bookkeeping Lite, a simplified solution for small business owners.
Tax Savings in Action: Real Example
Imagine you run a small café in Fort Lauderdale. You hire a new employee who’s a military veteran. You submit IRS Form 8850, get certified, and claim the credit.
At tax time, you receive nearly $5,600 off your tax bill. That’s enough to cover a month’s rent or upgrade your coffee machines.
Now multiply that across multiple hires, and you see how quickly the savings stack up.
FAQs: Quick Answers About Form 8850
Q: What is Form 8850?
A: It’s the IRS form tied to the Work Opportunity Tax Credit.
Q: Do I have to fill out Form 8850 for every hire?
A: No, only if you want to claim the WOTC.
Q: Is there a deadline?
A: Yes, 28 days from the employee’s start date.
Q: Where do I send it?
A: To your state workforce agency, not directly to the IRS.
Q: What happens if I don’t fill it out?
A: You lose eligibility for the tax credit.
Wrapping It Up: Don’t Let Free Money Slip Away
Here’s the bottom line: Form 8850 isn’t just another piece of paperwork. It’s a direct path to lowering your tax bill while hiring people who need the opportunity.
Florida small businesses, especially in industries with high turnover, should be paying close attention to this credit. It’s not mandatory, but skipping it is like turning down a discount at checkout, why would you?
So next time you onboard a new hire, pause for a moment. Ask yourself: Do they qualify under WOTC? Have I filled out IRS Form 8850?
If the answer is yes, you’re not just building your team, you’re building financial breathing room for your business.
And if you’re still unsure? Book your appointment with our team at JC Castle Accounting. We’ll help you make sense of the forms, the deadlines, and the tax savings.
Because honestly, why pay more in taxes when the law is practically begging you not to?
