PRLA Spring 2019

Spring 2019 • PENNSYLVANIA RESTAURANT & LODGING matters •  13 THE WOTC IS a federal income tax credit for businesses that hire individuals from specified target populations. It’s aimed at encouraging employers to take a chance on people who may need extra help finding and staying at a job. Eligible employees include veterans, youth in summer jobs, members of designated assistance programs, qualified ex-felons, and others. The program is a three-way partnership: It’s powered by a federal hiring tax credit; the certification process is administered by states, and private employers do the hiring. The WOTC has helped move millions of people into jobs over the years, including in many restaurant companies. It has helped drive up payroll tax revenues, given employers help in training and retaining valued employees, and yielded bottom-line benefits for businesses. Employers today report that the credit is easier than ever to use. Here are five reasons to look into the WOTC: It’s a great time to try it out. After years of renewing the credit for just a year or two at a time, Congress passed a five- year authorization of the tax credit in 2015. The longer-term authorization, through 2019, gave states confidence to invest in their WOTC systems. Some 30 states have automated at least part of the process, making it easier for businesses to apply for WOTC eligibility determinations for their new hires— a huge improvement over the paper-based, manual process of the past. Businesses in many states can now submit applications electronically and get instant access to WOTC determinations. In Pennsylvania, you can visit http://bit. ly/2PAWOTC for state-specific information. 1 2 The program’s scope is wide. More employees may quality for a WOTC credit than you would think. Eligible individuals include food-stamp recipients, individuals referred through vocational-rehab programs, disabled or unemployed veterans, and millions of others. The credit applies to both full- and part-time employees and is based on the number of hours the employee works. ➔