SB 5358 — Providing incentives to employers to hire certain hard-to-place job seekers.

S-0830.2S-0524.1 SUBSTITUTE SENATE BILL 5358 State of Washington 67th Legislature 2021 Regular Session By Senate Human Services, Reentry & Rehabilitation (originally sponsored by Senators Gildon, Braun, Darneille, Nguyen, Warnick, and Wellman)Wellman READRead FIRSTfirst TIMEtime 02/05/21.01/27/21.

Referred to Committee on Human Services, Reentry & Rehabilitation.

(3) It is the legislature's specific public policy objective to encourage the employment of certain unemployed persons, such as persons convicted of a felonyfelony, recipients of certain federal or state benefits, and homeless persons.

It is the legislature's intent to provide employers a credit against the business and occupation tax or public utility tax for hiring certain unemployed persons which would reduce an employer's tax burden p.

1 SSBSB 5358 reduce an employer's tax burden thereby inducing employers to hire and create jobs for such persons.

The credit equals the20 lesser of 10 percent or $500 of wages and benefits paid to or on behalf of a qualifying employee,employee withup to a maximum of a$1,500 $500 credit for each qualifying employee hired on or after October 1, 2021.

(2) No credit may be claimed under this section until a qualifying employee has been employed for at least threetwo consecutive full calendar quarters.

2 SSBSB 5358 (5) Credits earned under this section may be claimed only on returns filed electronically with the department using the department's online tax filing service or other method of electronic reporting as the department may authorize.

(i) Is a homeless personperson, or a person convicted of a felony;felony, a recipient of food benefits under Title 74 RCW, a recipient of temporary assistance for needy families, a supplemental security income recipient, or a vocational rehabilitation referral;

and (iii) Is employed in a permanent full-time position for at least threetwo consecutive full calendar quarters by the person claiming the credit under this section.

(d) "Recipient of food benefits under Title 74 RCW" means a person between the ages of 18 to 39 who is a recipient of food benefits under Title 74 RCW.

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3 SB 5358 (e) "Recipient of temporary assistance for needy families" means a person receiving benefits under chapter 74.12 RCW.

(f) "Supplemental security income recipient" means a person receiving federal supplemental security income benefits.

(g) "Vocational rehabilitation referrals" means an injured worker referred for vocational rehabilitation services under chapter 51.32 RCW.

p.(1) A person is allowed a credit against the tax due under this chapter as provided in this section.

3The SSBcredit 5358equals (1)20 Apercent personof iswages allowedand benefits paid to or on behalf of a creditqualifying againstemployee theup taxto duea undermaximum thisof chapter$1,500 asfor providedeach inqualifying thisemployee section.hired on or after October 1, 2021.

The(2) No credit equalsmay thebe lesserclaimed ofunder 10this percentsection oruntil $500 of wages and benefits paid to or on behalf of a qualifying employee,employee withhas abeen maximumemployed of a $500 credit for eachat qualifyingleast employeetwo hiredconsecutive onfull orcalendar afterquarters. October 1, 2021.

(2) No credit may be claimed under this section until a qualifying employee has been employed for at least three consecutive full calendar quarters.

No application is required to claim the credit, but the taxpayer must keep records necessary for the department to determine eligibility under this section including recordsp. establishing the person's status as a qualifying employee under subsection (7)(c)(i) and (ii) of this section when hired by the taxpayer.

4 SB 5358 records establishing the person's status as a qualifying employee under subsection (7)(c)(i) and (ii) of this section when hired by the taxpayer.

p.(c) "Qualifying employee" means a person who meets all of the following requirements:

4(i) SSBIs 5358a (c)homeless "Qualifyingperson, employee"a meansperson convicted of a personfelony, whoa meetsrecipient allof food benefits under Title 74 RCW, a recipient of thetemporary followingassistance requirements:for needy families, a supplemental security income recipient, or a vocational rehabilitation referral;

(i) Is a homeless person or a person convicted of a felony;

and (iii) Is employed in a permanent full-time position for at least threetwo consecutive full calendar quarters by the person claiming the credit under this section.

(8)(d) Credits"Recipient allowedof food benefits under thisTitle section74 canRCW" bemeans earneda forperson taxbetween reportingthe periodsages throughof June18 30,to 2030.39 who is a recipient of food benefits under Title 74 RCW.

(e) "Recipient of temporary assistance for needy families" means a person receiving benefits under chapter 74.12 RCW.

(f) "Supplemental security income recipient" means a person receiving federal supplemental security income benefits.

(g) "Vocational rehabilitation referrals" means an injured worker referred for vocational rehabilitation services under chapter 51.32 RCW.

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5 SB 5358 (8) Credits allowed under this section can be earned for tax reporting periods through June 30, 2030.

56 SSBSB 5358