TEGL11-08c1acc.pdf

ETA Advisory File Text

CLASSIFICATION WOTC CORRESPONDENCE SYMBOL OWI EMPLOYMENT AND TRAINING ADMINISTRATION ADVISORY SYSTEM U.S. DEPARTMENT OF LABOR Washington D.C. 20210 DATE March 25 2009 TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 11 -08 Change 1 TO ALL STATE WORKFORCE AGENCIES ALL STATE WORKFORCE LIAISONS ALL REGIONAL WOTC COORDINATORS FROM DOUGLAS F. SMALL s Deputy Assistant Secretary SUBJECT Extension Period Granted to all State Workforce Agencies SWAs and Employers for the Uninterrupted Use of All 2007 Work Opportunity Tax Credit WOTC Processing Forms l. Purpose . The purpose of this advisory is to inform the SWAs that the Employment and Training Administration ETA is granting an extension period whe re employers or their representatives can file WOTC certification requests for new hires using the previously OMB-approved June 2007 ETA Forms 9061 or 9062. 2. References . The American Recovery and Reinvestment Act of 2009 Public Law 111-5 Recovery Act the Small Business and Work Opportunity Tax Credit Act of 2007 Public Law 110-28 the Tax Relief and Health Care Act of 2006 Public Law 109-432 the Working Families Tax Relief Act of 2004 Public Law 108-311 the Job Creation and Worker Assistance Act of 2002 Public Law 107-147 Paperwork Reduction Act of 1995 Internal Revenue Code of 1986 Section 51 as amended Training and Employment Guidance Letter TEGL No. 11-08 dated February 19 2009 Extension of the Information collection for the Consolidated Work Opport unity Tax Credit Program Revised Reporting and Processing Forms TEGL No. 19 05 dated March 7 2006 New Streamlined Reporting Requirements and Extension of the Information Collection for the Work Opportunity and Welfare-to-Work Tax Credits TEGL No. 05-07 dated September 11 2007 Reauthorization of the Work Opportunity Tax Credit and Other Program Changes TEGL No. 20-06 dated April 3 2007 Reauthorization of the Work Opportunity Tax Credit and Other Program Changes ETA Handbook No. 408 November 2002 Third Edition the Handbook and the November 2008 version of the May 2005 Addendum to the Handbook OMB No. 1205-0371 . RESCISSIONS None EXPIRATION DATE Continuing -2- 3. Background . Public Law 109-432 signed into law on December 20 2006 and 110-28 signed into law on May 25 2007 reauthorized amended and expanded the WOTC Program. To address the changes and new provisions introduced by these two pieces of legislation ETA updated the WOTC reporting administrative an d processing forms and other program related materials and developed a mo dified automated reporting system and procedure. All revised and updated forms were approved by OMB with a June 2007 date. On September 6 and 7 2007 ETA provided to the regions and the states a two-session training webinar on the new reporting requirements. ETA issued TEGL 11-08 on February 19 2009 transmitting to the SWAs and WOTC participating partners all the reporting processing and administrative forms and program related materials cleared by OMB and dated November 2008. The guidance in this TEGL required the SWAs and participating employers to begin using the November 2008 OMB-cleared ETA Forms 9061 Individual Characteristics Form or 9062 Conditional Certification for their certification requests within two weeks from the date of issuance of that TEGL. Current OMB No. 1205-0371 data collection approval includes ETA Forms 9061 9063 9065 9057 ETA Form 9058 - Report 1 and 9059. The revised forms incorporate the latest amendments and provisions introduced by P.L. 110-28 for new hires who begin to work for an employer after May 25 2007. The June 2007 and November 2008 versions o f ETA Form 9061 are very similar in content. The November 2008 version howev er was reformatted in a user-friendly and easy-to-use style and revised to include the comments received during the Federal Register Notice comment period whic h expired on March 10 2008. On February 17 2009 the President signed into law the American Recovery and Reinvestment Act of 2009. The Recovery Act amended Section 51 of the Internal Revenue Code by adding two additional target groups to the WOTC Program. The amended Section 51 d 14 provides that unemployed veterans and disconnected youth who begin work for an employer during 2009 and 2010 shall be treat ed as members of a targeted group for purposes of the WOTC. ETA is in the pro cess of updating the recently OMB-approved forms and program materials to reflec t these new provisions. A separate advisory transmitting the new legislative changes the updated forms and guidance on how to administer these two new target gro ups will be issued in the immediate future. -3- 4. Reporting Authority . Reporting program administration and processing forms and all other program-related materials for the consolidated WOTC Progra m are approved according to the Paperwork Reduction Act of 1995 under OMB No. 1205- 0371 and are all dated November 2008. This authority is effective throu gh November 30 2011. 5. Reporting Instructions . Given the challenges of implementing the November 2008 forms under the timeframe set forth in TEGL 11-08 and the further changes required based on the addition of two new target groups by the Recovery Act ETA is permitting employers to continue to file with the SWAs the June 2007 previously OMB approved ETA Forms 9061 Individual Characteristics Form or 9062 Conditional Certification for the new hires listed in these two forms only as part of their certification requests. This extension period is granted until further notice. Upon publication of final guidance by the Internal Revenue Service ETA will issue policy guidance to the SWAs and the business sector addressing the two new target groups provisions. SWAs are instructed to accept either the June 20 07 or the November 2008 ETA Forms 9061 or 9062 from employers during this extensio n period . 6. Action Requested . SWA administrators are requested to provide this TEGL to all WOTC State Coordinators and related program staff and ensure the inform ation and guidance provided is shared with the private sector businesses thei r representatives and all other Federal and state partners. 7. Inquiries Direct all questions to the appropriate Regional WOTC Coordinator.