TN 1 (11-10)

GN 03316.160 Disclosures to Employers Who Assist in Administering the Work Opportunity Tax Credit (WOTC) Program with and without Consent

A. Background

The Small Business Job Protection Act of 1996 created the WOTC program to provide federal employer tax credits as an incentive to hire certain targeted population groups. To qualify for the tax credit, employers or their designated agents (e.g., a payroll company working on behalf of the employer) must verify that the newly hired employee qualifies for one of 12 targeted population groups. Persons who receive Supplemental Security Income (SSI) payments 60 days before the hiring date qualify as SSI Recipient targeted group members.

B. Policy

1. Department of Labor (DOL) and State Workforce Agencies (SWA) requests

DOL and SWA administer the WOTC program and, therefore, are income maintenance programs. These agencies may request SSI verification information under the applicable Privacy Act routine use for federal and state administration of health and income-maintenance programs. When the request relates to the WOTC program, we can release information directly to DOL and SWA without consent. However, since the WOTC program is not administered under the Social Security Act, we must charge DOL and SWA the appropriate fee for providing the information, even though consent is not required.

2. Third party requests

Third party requests for SSI information made by, or on behalf of, employers for purposes related to the WOTC program, are non-program purpose related requests. Therefore, when processing third party requests for SSI information, we must obtain a proper consent document and charge the appropriate processing fee.

3. Third party query (TPQY)

The TPQY provides more information than is necessary to satisfy requests for information related to the WOTC program. Therefore, we do not provide a TPQY or honor a request for a TPQY. Receipt or non-receipt of SSI payments during the relevant period qualifies an SSI Recipient group member for the WOTC program. We do not provide benefit amounts or any other information in response to requests related to the WOTC program.

C. References


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