On June 23, 2023, the U.S. Department of Labor (DOL) published guidance updating forms used in the administration of the Work Opportunity Tax Credit (WOTC) and introduced a new form, ETA Form 9198, Employer Representative Declaration Form.
ETA Form 9198
Form 9198 replaces IRS Form 2848, Power of Attorney and Declaration of Representative (POA). The POA is used by a business partnering with a provider of WOTC services like Experian Employer Services, allowing Experian to coordinate with State Workforce Agencies for WOTC purposes on an employer’s behalf.
WOTC is a federal tax credit program encouraging businesses to hire people from certain disadvantaged groups by offering an income tax credit to businesses who employ individuals who meet the criteria. By working with an experienced provider like Experian Employer Services, employers can take advantage of our streamlined WOTC form to determine eligibility with each new hire without affecting the candidate experience.
Deadline and New Action Required for Form 9198
This change by the DOL will require action by an employer’s WOTC partner. All IRS Form 2848 authorizations will automatically terminate on June 1, 2024, even if the form is scheduled to expire extending beyond that date. To ensure uninterrupted WOTC services, the Experian Employer Services WOTC team is working closely with each state agency to understand when the state(s) will be prepared to accept the new Form 9198.
Employers should be prepared to comply with this new requirement as of June 1 to ensure they are maximizing their WOTC potential. Experian Employer Services will assist with the completion and submission of new ETA Forms 9198, and coordinate with state workforce agencies to submit executed forms and continue monitoring to ensure acceptance. If you’re not already utilizing Experian’s WOTC services, you can learn more about the tax credit, how it can benefit your organization, or how this change may affect your business by visiting our website.
