32 Miss. Code. R. § 22-3.11.4 - Work Opportunity Tax Credit

The Work Opportunity Tax Credit (WOTC) Program was created by the Small Business Job Protection Act of 1996 ( PL 104-188 ). On May 26, 2007, Congress extended the WOTC Program through August 31, 2011. The WOTC is available to employers hiring individuals from one or more of eight target groups including VR referrals. The tax credit available to employers who hire an individual from one of the target groups is as follows:

* For eligible individuals who work for an employer at least 120 hours, but less than 400 hours, the tax credit available to the employer is 25% of the first $6,000.00 of wages paid.

* For eligible individuals who work for an employer at least 400 hours or more, the tax credit available to the employer is 40% of the first $6,000.00 of wages paid.

Certification of Eligibility

In accordance with a Cooperative Agreement with the Mississippi Department of Employment Security (MDES), vocational rehabilitation (VR) counselors are allowed to issue Conditional Work Opportunity Tax Credits (Form ETA 9062) only to clients found eligible for vocational rehabilitation services. Form ETA 9062 replaces Form ETA 9061 and the letter of eligibility formerly submitted by VR Counselors to identify eligible target group members. The new Form ETA 9062 can be obtained either from the district BDS staff or from the MDRS State Office in care of the BDS Director.

Instructions for filling out Form ETA 9062 (Conditional Certification)

Instructions for each line item are listed on the back of the Form ETA 9062; however, specific information relative to MDRS for certain items are as follows:

Item #1: Initiating Agency Code. Each VR District will have its own code as listed below:

District I	2001
District II	2002
District III	2003
District IV	2004
District V	2005
District VI	2006
District VII	2007
District VIII	2008
District IX	2009
District X	2010

Item #2: Control No. (Leave blank. Check only Participating Agency.)

Item #3: Type of Conditional Certification. (Check Original)

Item #5: State Employment Security Agencys Name and Address. (This is the name and address of the VR Counselor, not the WIN Job Center.)

Item #6: Signature. (The VR Counselor must sign here. No other MDRS employee signature is acceptable.)

Item #11: Target Group Code. (The Code for VR eligible clients is E.)

Item #12: Group. (This item is to be left blank for all VR clients.)

Item #14: (This item is to be left blank for all VR clients.)

The Form ETA 9062 should be shown to the prospective employer prior to the job offer by the applicant (VR client). In the event the VR client is hired, the employer should be given the original of the Form ETA 9062. The form is due to the Mississippi Department of Employment Security within 21 days of the date the client is hired.

APPLICATION for WOTC

Application for the WOTC by the employer who hires a VR client is facilitated by the submission of the IRS Form 8850. This form may also be obtained from the District BDS staff or from the MDRS State Office in care of the BDS Director.

The job applicant (VR client) and the employer must sign and date IRS Form 8850 on or before the day the job offer is made. The employer must submit the IRS Form 8850 along with the Form ETA 9062 to MDES no later than the 21^st day after the job applicant begins work for the employer.

The BDS is the lead VR program for the facilitation of the WOTC and implementation of the Cooperative Agreement with MDES. Questions regarding any aspect of WOTC procedures may be directed to the District BDS staff.

Notes

32 Miss. Code. R. § 22-3.11.4