- 1. EMPLOYMENT TRAINING PANEL (ETP)
- 2. WORK OPPORTUNITY TAX CREDIT (WOTC)
- 3. EMPLOYEE RETENTION TAX CREDIT (ERTC)
For ERTC eligibility, does the company need to calculate full‐time equivalents or just the total of all full‐time employees and exclude part‐time employees?
For ERTC, unlike PPP, the employee threshold is determined by looking at full‐time employees rather than full‐time equivalents. A full‐time employee, in this case, is defined as someone working an average of 30 hours per week or 130 hours per month.
Health care costs that employers pay on behalf of their employees to provide and maintain a group health plan can be included as eligible costs for determining the credit to maximize the refund.
Wrong; you may qualify based on other criteria the IRS released in a technical notice. As incentive professionals, we will use every opportunity to qualify you for the refunds.
The ETP grants are performance-based and must be earned per the terms of the ETP Agreement. Payments are made at three points;
25% after an employee receives 8 hours of training
50% after employee completes training
25% after the employee meets retention requirements
Reimbursements are calculated on an hourly basis. For each employee training hour, employers can receive reimbursements of $15-$26 per training hour. Hourly rates vary based on business size and industry. Computer-based training is always paid at $8/hr.
ETP funds training to for-profit employers that are subject to the Unemployment Insurance Tax. Current priority industry for the Panel include, manufacturing, biotech/life science, IT services, media/entertainment, goods movement and transportation logistics, agriculture, healthcare, construction, and green technologies.
Taxable employers claim the WOTC as a general business credit on Form 3800 against their income tax. The WOTC is calculated using Form 5884.
The WOTC is based on the hours worked and wages paid to qualified employees. Credits can range from a few hundred dollars per employee up to almost $10,000 per qualified employee.
An employer must hire an employee who is certified as being a member of a targeted group. For tax-exempt organizations, the WOTC may only be claimed for qualified veterans.