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Tax Credit Services Bureau of Workforce Development Partnership 651 Boas Street, 12 th Floor Harrisburg, PA 17121
Tax Credit Services
Bureau of Workforce Development Partnership651 Boas Street, 12th Floor
Harrisburg, PA 17121
Tax Credit Services
Agenda
•Work Opportunity Tax Credit•Federal Bonding Program•Questions and Answers
Work Opportunity Tax Credit
What is WOTC?
WOTC is a Federal tax credit available to employers who hire and retain Veterans and individuals from other target groups with significant barriers to employment.
Work Opportunity Tax Credit
Program Highlights• Savings for employers• No limit on the number of new hires• Any size employer can benefit• Qualified “tax-exempt” (i.e., 501(c))
organizations are now eligible to claim the WOTC for Veteran new hires.
Work Opportunity Tax Credit
Target Groups• Veterans – 5 categories• TANF Recipients• SNAP (Food Stamps) Recipients• Designated Community Residents• Vocational Rehabilitation Referral• Ex-Felons• Supplemental Security Income Recipients• Summer Youth
Work Opportunity Tax Credit
How Is The Credit DeterminedEmployers generally can earn a tax credit equal to 25% or 40% of a new employee's first-year wages, up to the maximum for the target group to which the employee belongs.
•25% for working 120 hours•40% for working 400 hours
Work Opportunity Tax Credit
Veteran Target GroupsReceiving SNAP (food stamps)Benefits $2,400
Disabled Veteran - Hired within 1 Year of Leaving Service $4,800
Disabled Veteran - Unemployed 6 Months $9,600
Unemployed Veteran (4 Weeks) $2,400
Unemployed Veteran(6 Months) $5,600
Work Opportunity Tax Credit
Other Target GroupsShort-Term TANF Recipient $2,400Long-Term TANF Recipient $9,000 (over 2 years)SNAP (food stamp) Recipient $2,400Designated Community Resident $2,400
Vocational Rehab Referral $2,400Ex-Felon $2,400SSI Recipient $2,400Summer Youth Employee $2,400
Work Opportunity Tax Credit
Tax Exempt Organizations (501C)
Credit = 16.25% of qualified 1st year wages for at least 120 hours of service
Credit = 26% of qualified 1st year wages for at least 400 hours of service
(Credit goes against payroll taxes.)
Applying for the CreditTo request a tax credit for a potentially-eligible
individual, the employer must submit:IRS form 8850 and ETA Form 9061
Forms postmarked no later than 28 days after the start date
Note: Forms may be submitted electronically via CWDS www.cwds.state.pa.us
Work Opportunity Tax Credit
Work Opportunity Tax Credit
Employers can access forms through Commonwealth Workforce Development
System’s Help Center. https://www.cwds.state.pa.us
Click on this icon which is located in the upper right hand corner
Look under “List of Miscellaneous Documents”
Tax Credit Forms
Work Opportunity Tax Credit
Employers may also contact: PA CareerLink® Offices Offices of Vocational Rehabilitation (OVR) County Assistance Office’s Tax Credit Services @ 1-800-345-2555 or [email protected]
Tax Credit Forms
Work Opportunity Tax Credit
Employers mail completed forms to:
Department of Labor & IndustryTax Credit Services
651 Boas Street, 12th floorHarrisburg, PA 17121
Tax Credit Services Address
Federal Bonding Program
Federal Bonding Program
Program Objective
In 1966 the U.S. Department of Laborestablished The Federal Bonding Program
to provide Fidelity Bonds that guaranteehonesty for “at-risk”, hard-to-place job
seekers.
Federal Bonding Program
Program Highlights
No cost to the applicant or employer No paperwork to complete No waiting - Bond issued immediately No deductible Bond is good for 6 months @ $5,000.00
Federal Bonding Program
Qualifications
Anyone with a barrier to employment. Any employee who requires bonding
to stay employed due to a promotion with increased monetary responsibilities.
Federal Bonding Program
Program Restrictions
Must be of legal working age in PA. Must pay federal taxes through payroll
deduction. Must remain on the job for a minimum
of 6 months. Self-Employed individuals are ineligible.
Federal Bonding Program
Bond Issue Process
1) Employer contacts the State Bonding Coordinator (SBC) on the new employees first day of work.
2) SBC sends confirmation letter to employer. 3) Fidelity Bond is mailed to the employer within
2 weeks.
Federal Bonding Program
Contact Information
State Bonding Coordinator (717) 783-3676
Federal Bond Website www.bonds4jobs.com
Tax Credits and Bonding
Tax Credits and Bonding
Contact Information
Greg Shirk Tax Credit Services
(717) 783-3676 | [email protected]
