TEN_09-21_acc.pdf

ETA Advisory File Text

TRAINING AND EMPLOYMENT NOTICE NO. 9 -21DATE September 24 2021EMPLOYMENT AND TRAINING ADMINISTRATION U.S. DEPARTMENT OF LABOR WASHINGTON D.C. 20210 TO STATE WORKFORCE AGENCIES STATE WORKFORCE LIAISONS STATE AND LOCAL WORKFORCE BOARDS AND CHAIRS AMERICAN JOB CENTERS FROM LENITA JACOBS-SIMMONS Acting Assistant Secretary SUBJECT Release and Availability of the Work Opportunity Tax Credit WOTC Quick Reference Guide for Employers 1. Purpose. To announce the availability of the Work Opportunity Tax Credit WOTC Quick Reference Guide for Employers. 2. Action Requested. State Workforce Agencies SWA should disseminate this information to all appropriate staff employers collaborating partner agencies and other interested partners. SWAs are encouraged to share this quick reference guide when they conduct employer engagement activities to promote good stable jobs for members of WOTC targeted groups including formerly incarcerated individuals. View the new outreach resource tool available on the U.S. Department of Labor s WOTC website https www.dol.gov agencies eta wotc. 3. Summary and Background.a.Summary The WOTC is a federal tax credit available to eligible employers that hire first-time qualifying members of targeted groups who experience significant challenges to attain employment. The WOTC Quick Reference Guide for Employers provides information on eligible targeted groups instructions on how to file a certification request and explains how employers can receive conditional certifications by coordinating with American Job Centers AJC and partnering agencies. b. Background The WOTC is set forth under section 51 of the Internal Revenue Code of 1986 Code . WOTC has been extended several times and currently is effective until December 31 2025 Section 113 of Division EE of P.L. 116-260 -- Consolidated Appropriations Act 2021 . For more information on how to file for the tax credit and the eligible targeted groups visit the Internal Revenue Service IRS website http www.irs.gov wotc and the Employment and Training Administration ETA website https www.dol.gov agencies eta wotc. s 2 4. Details. To administer WOTC successfully SWAs a. Establish and maintain agreements with partner agencies in the American Job Center network also known as the One-Stop Career Center system and coordinate efforts to promote WOTC to employers job seekers and other Workforce Innovation and Opportunity Act partners. b. Partner with local workforce areas state vocational rehabilitation agencies Veterans Administration and related groups Employment Networks and other state and local agencies organizations for the purposes of training state and participating agency staff on the WOTC. c. Provide technical assistance to AJC and WIOA partner staff on conducting WOTC targeted group preliminary eligibility determinations for issuing Conditional Certifications where appropriate. In June 2021 the Biden-Harris Administration announced its comprehensive strategy to improve public safety and increase employment opportunities for formerly incarcerated individuals. Although there is no single root cause of crime and violence having access to good stable jobs promotes public safety. Additionally recidivism rates are lower when formerly incarcerated individuals secure good stable jobs. The Administration has identified leveraging employer tax credits including the WOTC and the American Rescue Plan s Employee Retention Credit ERC with resources such as the Federal Bonding Program to incentivize hiring of formerly incarcerated individuals as one of its concrete steps to facilitate employment services and associated services for formerly incarcerated individuals. To view the White House announcement visit https www.whitehouse.gov briefing- room statements-releases 2021 06 23 fact-sheet-biden-harris-administration-announces- comprehensive-strategy-to-prevent-and-respond-to-gun-crime-and-ensure-public-safety . 5. Inquiries. For further information please direct inquiries to the appropriate SWA or ETA Regional Office https www.dol.gov agencies eta wotc contact. 6. References. Section 51 of the Internal Revenue Code 26 U.S.C. 51 available at https uscode.house.gov view.xhtml jsessionid 36D3880A571F8263FD07D4406A9C77 4E hl false edition prelim req granuleid 3AUSC-1995-title26-section51 num 0. Department of Labor s Federal Bonding Program https bonds4jobs.com FAQs Employee Retention Credit under the CARES Act https www.irs.gov newsroom faqs-employee-retention-credit-under-the-cares-act 7. Attachment s . WOTC Quick Reference Guide for Employers.