Employment and Training Administration
Washington, D. C. 20210






April 27, 1998















U.S. Employment Service




Work Opportunity and Welfare-to-Work Tax Credits Revised Administrative and Quarterly Reporting Forms.

  1. Purpose. To announce the approval and extension of the data collection authority for the Work Opportunity Tax Credit(WOTC) program and the Welfare-to-Work (WtW) Tax Credit by the Office of Management and Budget (OMB); transmit the revised administrative and redesigned reporting forms; and provide related guidance.

  2. References. Internal Revenue Code of 1986, Secs. 51 and 51.A, as amended; the Small Business Job Protection Act of 1996 (P.L. 104-188); ESPL No. 5-97, "Work Opportunity Tax Credit Administrative and Quarterly Reporting Forms," dated November 25, 1996; the Taxpayer Relief Act of 1997 (P.L. 105-34); ETA Handbook No. 408, First Edition, July 1997; the February 1998, Addendum; and ESPL No. 5-98, "Sources of Documentary evidence to Establish Age and Residence under Work Opportunity Tax Credit program," dated March 18, 1998.

  3. Reporting Requirements. Procedures for reporting information collected by the Designated Local Agencies (DLAs)/State Employment Security Agencies (SESAs) on program activities are outlined in the July 1997 edition of ETA Handbook No. 408, Chapter VI, pp VI-68-77. This directive amends and supersedes relevant sections of this Handbook's edition. A second edition to this Handbook is being put together for submission to the OMB. This second edition will include the revised administrative and reporting forms with their corresponding instructions.

  4. Reporting Instructions. The four administrative forms have been revised and updated to reflect the new Supplemental Security Income (SSI) target group under the WOTC program and the Long-Term Family Assistance Recipient group for the WtW tax credit. Due to the significant changes in the layout of the reports and the data to be collected and reported, we are asking that you carefully read and follow the instructions on the back of each administrative and reporting form. Other changes include deletion of certain words and addition of information reflecting the new provisions of P.L.105-34. A description or each revised form follows:

    1. Administrative Forms: 

      1. The Individual Characteristics Form (ICF), Work Opportunity and Welfare-to-Work Tax Credits, ETA 9061.

        Content revisions for this form include, for Boxes 11 and 12, deletion of the words "consecutive," updated target group definitions and/or requirements and addition of Boxes 16, for the SSI target group and 18, for the "Long-Term IV-A Recipient group. The latter group qualifies employers for the WtW Tax Credit. Also, Box 19, in the instructions for completing this form, has been updated. The "I-9" is no longer an acceptable source to document age or residence. The new sources of documentary evidence that replace the "I-9" form have been added under the Age/Birthdate and Empowerment Zone/Enterprise Community columns respectively. The disclaimer paragraph on page 3, can now be cut off and retained by the applicant for his personal records.

      2. The Conditional Certification (CC) Form, Work Opportunity and Welfareto-Work Tax Credits, ETA 9062.

        Content revisions for this form include, new Box 12, for Long-Term Family Assistance Recipient group, and under "NOTE TO EMPLOYER," updated language in Box 14, new Boxes 19 and 20 for the employer's signature and date, respectively, and a Box (at the bottom of the form) for the employer to indicate, with a check mark, the type of certification(s) he/she is requesting.

      3. The Employer Certification Form (ECF), Work Opportunity and Welfareto-Work Tax Credits, ETA 9063.

        Content revisions for this form include, new Box 14, for the WtW group and specific guidance to employers and their representatives under the "COMMENTS" section regarding the "two-tier minimum employment period" under the WOTC program and the WtW tax credit, and the availability of "dual" certifications for individuals receiving TANF benefits and limitations.

      4. Agency Declaration of Verification Results, Work Opportunity and Welfare-to-Work Tax Credits, ETA 9065.

        There are no major content revisions for this form other than its title. Note: ETA Forms 9061 and 9062 are required forms that must be used without modification by the DLAs/SESAs and all Participating Agencies (PAs). ETA Forms 9063 and 9065 are optional forms. SESAs electing not to use these two forms must assure that the alternative forms used contain ALL of the information that appears on the optional forms.

    2. Reporting Forms. 

      1. Conditional Certifications Issued, Work Opportunity and Welfare-to-Work Tax Credits,-- Report No. 1, ETA Form 9057.

      2. Certification Workload and Characteristics of Certified Individuals, Work Opportunity and Welfare-to-Work Tax Credits, -- Report No. 2, ETA Form 9058.

      3. Verification Results, Work Opportunity and Welfare-to-Work Tax Credits, -- Report No. 2, ETA Form 9059.

      The revised reporting forms are required to be used by all DLAs/SESAs without modification to report program operation and verification activities on a quarterly basis.

  5. Quality Control. Of particular concern are the performance of quality control and verification activities -- at certain key points during the processing, verification and certification process-- as provided for in Chapter V of the first edition of ETA Handbook. No. 408. These activities will facilitate and support the data reported in Report No. 3, ETA Form 9059. It is important that these activities be performed on a regular basis to ensure the integrity of the WOTC, program and the WtW Tax Credit.

  6. Filing Deadlines. SESAs are to prepare Reports 1 through 3 for the first and second quarters, using the new forms and to submit them to the corresponding Regional Office by May 15, 1998. A reporting schedule for the last two quarters -- with submittal dates for Reports 1, 2 and 3-- is attached.

  7. Reporting Authority. The revised reporting and data collection requirements have been approved by OMB according to the Paperwork Reduction Act (PRA) of 1995. The OMB approval number (OMB No. 1205-0371) is effective through July 31, 1998. This office has already started the regular PRA submission process to OMB by publishing in the Federal Register, the upcoming Second Edition of ETA Handbook No. 408.

    However, the SESAs should be advised that this expiration date (i.e., July 31, 1998) should not affect their third and fourth quarter reports. While OMB is in the process of reviewing a PRA package submittal, it routinely grants extensions --on a day-byday basis-- to the SESAs, PAs and employers and their representatives to use the expired forms (e.g., those expiring on July 31, 1998) through the end of their review period. Once the review period is completed, OMB grants final clearance to use the data collection forms. Accordingly, DLAs/SESAs, PAs, employers and their representatives should continue to use the enclosed program and reporting forms until such time as the Second Edition of ETA Handbook No. 408 is printed and distributed.

  8. Action Required: State Employment Security Agency Administrators are requested to provide the WOTC/WtW Coordinators with the information and attachments in this ESPL.

  9. Inquiries. Direct all questions. to the appropriate Regional Coordinator.

  10. Attachments.