KCRA 3 Investigates has received word of another backlog inside California’s Employment Development Department and this one is affecting both businesses and potential employees.
The federal money is meant to help some of the most at-need in California obtain a job.
What is called the Workforce Opportunity Tax Credit is a federally funded program that gives up to $ 9,600 per person. It’s a broad credit for Supplemental Nutrition Assistance Program – or SNAP – recipients, veterans, formerly incarcerated felons, and others.
The EDD is supposed to determine if the employee is eligible and then send a certificate to the business, but Assm. Jim Patterson, R-Fresno, found that businesses have not been getting those certifications.
“The problem is as often times as the EDD will not be direct and straight with us,” Patterson said. “They said we won’t get an update on the backlog until October of 2022”
KCRA 3 Investigates reached out to EDD for comment before our report aired. After our report, EDD sent the following statement:
“Certification delays have been a national issue since 2015 and in 2019 IRS began permitting employers to receive the credit in the year the certification issues, regardless of when the employee is hired. In other words, employers still receive the tax credit even if the certification is processed later. California certified 149,604 applications last year — more than 3 times the national average of 41,629. Applications to this program jumped nearly 50 percent during the pandemic. California is working on a program to automate approvals and speed applications. “
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