Abstract: A tool having a detectable wireless marker or tag is provided. The tool has a working portion with a projection or tang by which the working portion of the tool is held, a wireless tag located on, but insulated from the tang, and a handle disposed over and encompassing the projection or tang and the wireless tag. In an exemplary embodiment, the wireless tag is insulated from the tang using a housing assembly made up of: an enclosure with a side opening for receiving a detectable wireless tag; a cover that securely fits over the side opening; and a snap-fit assembly component integrally formed on an outer surface of the enclosure for receiving a tools' tang. The invention allows for the use of fragile markers or tags, which are protected by the housing assembly from temperatures and pressures used during, for example, tool handle manufacturing processes. Also provided is a method for providing a tool with a detectable wireless tag, and a method for tracking and tracing tools used within a packaging facility.