NO! The way you describe wiring the unit you are switching the neutral wires in the circuit. This is considered bad practice (and may even violate electrical codes. Not a code wonk, so not sure here.) You should always be switching the hot side of a line voltage circuit. Your wiring will work, but you always have line voltage on circuits that should be off.
The black hot wire should be spliced to go to pins #5 & #7. Pins #6 and #8 then connect to the hot side of the outlet, and the bridge on the hot side of the outlet should be broken. Doesn't matter if the black (hot) wire goes to pin #1 or #2, as long as the white (neutral) wire goes to the other pin. Likewise, pins #5 & #6 can be swapped, and #7 & #8 can be swapped. But no neutral wires should go to pins #5, #6, #7 or #8.
An ITC-1000 should be wired exactly the same way as an STC-1000.
Brew on