Bulletin: TCI – US Department of Labor Issues Updated Guidance on WOTC

tax season preparation

Department of Labor Issues Updated Guidance on WOTC

Situation

In January, the United States Department of Labor released an update to Training and Employment Guidance Letter (TEGL) No. 25-15, with revised guidance on the Work Opportunity Tax Credit (WOTC). The main change was extending the grace period for using the previous versions of the Employment and Training Administration (ETA) Forms and IRS Form 8850 for submitting WOTC certification requests. The grace period ends on April 11, 2017. As of this date, the State Workforce Agencies will only accept the current versions of the ETA forms (revised in May 2016) and IRS Form 8850 (revised in March 2016).

The Department of Labor also reiterated that, when reviewing certification requests for the new Long Term Unemployment Recipient target group, they may use the ETA Form 9175, Long Term Unemployment Recipient Self-Attestation Form (SAF), to make final determinations in instances when the State Workforce Agencies cannot obtain all the necessary information from their State Unemployment Insurance agencies.

Solution

All Equifax Workforce Solutions clients using either the online or the IVR screening method require no action. All the forms that are generated from these systems were updated in July of last year.  This includes the new Self-Attestation Form (SAF) for the new Long Term Unemployment Recipient target group.

For those clients who continue to screen manually, by paper, the updated forms (including the SAF) have been available since August 2016.  Any paper screening clients who have not already begun using the new forms should do so immediately, but definitely no later than April 11, 2017.  Please discard unused copies of the older versions of the ETA and IRS forms.

Value

Equifax Workforce Solutions continues to monitor notifications from the United States Department of Labor and other government agencies for any changes that may impact the Work Opportunity Tax Credit.  Any paper screening clients should inquire about whether switching to online screening makes sense for their organization.  As noted above, one of the main benefits to you is the reduction of administrative burden that stems from transitioning to newer forms, as Equifax ensures the online screening system uses all of the latest and most current versions of WOTC related forms.

Contact us to learn more about employment tax credits.

Download pdf version of this bulletin

Related resources:

Webinar   |    “Getting the Most Out of WOTC:  3 Employers Speak”

Whitepaper   |   “Dual Value of the Work Opportunity Tax Credit:  Reduce Turnover, while Increasing Income”

About Michael Montgomery

Michael Montgomery is Director, Product Management for Equifax Workforce Solutions where he leads strategy and product development for the company’s Tax Credits and Incentives solutions. Montgomery has a B.S. in Marketing from the University of Arizona as well as an MBA from Southern Methodist University’s Cox School of Business.