Barbara Krikorian Tryk, chief operating officer of First Health Medical Center in Fresno, has been awaiting documentation from the EDD since April 2021. Here she is on a Zoom news conference with Assemblymember Jim Patterson Thursday.

Assemblymember Jim Patterson has one response for the California Employment Development Department (EDD) on why there is a backlog of much-needed employer tax credit documentation: an eyeroll.

Patterson held a new conference via Zoom this Thursday, joined by two local business owners to bring attention to the EDD’s yearlong backlog in processing business owners’ applications for the Workforce Opportunity Credit (WOTC).

The WOTC is a federal program that promotes the hiring of individuals who qualify as members of target groups — veterans receiving food stamps, qualified ex-felons, long-term family assistance recipients and more — by providing a federal tax credit of up to $9,600 for employers who hire them.

To receive the federal tax credit, employers need a certificate from the EDD confirming their employee qualifies.

Patterson said that the EDD confirmed to him that it is a year behind on processing the applications, and that as of September 2021, there are approximately 400,000 applications waiting to be processed.

This figure has likely increased, Patterson said, adding the EDD will not provide updated figures until October.

“They’ve said that lines are long, that solutions are few and far between—they said this first to unemployed people, then to victims of fraud, and now they are saying it to small business owners who are trying to do the right thing,” Patterson.

Patterson said the EDD is currently processing applications that employers submitted in June 2021. Their message to employers, he said: there is nothing we can do. Please wait a year.

“That just simply is absolutely an unacceptable excuse by the EDD,” Patterson said. “They’ve known that they have to get the certifications out.”

Barbara Krikorian Tryk, chief operating officer of First Health Medical Center, a medical clinic in Fresno, has been waiting for her certificate since April 2021.

Tryk said that the business is a big fan of the program, and already has more than 20 hires who qualified.

One employee, Jesus, was hired through the WOTC program and had previously worked at a chicken processing facility. He celebrated five years as an employee with First Health Medical Center this year.

She said the backlog is causing the business to suffer.

“We can’t wait to file our taxes, we have to get our taxes done. That means that we are actually going to have to incur yet another cost with our accountant. When the certificate is delivered, we are going to have to have him amend our taxes and hope they give us the credit,” Tryk said.

 

Amir Sadaghiani is another local business owner still waiting on certificates for applications he filed in May and July of 2021.

Sadaghiani is the owner of ActivMeals, a health meal delivery and pick-up service in Fresno. He has hired numerous employees through the program over the years, and currently has an employee hired through the program that has been with the business for three years.

Sadaghiani likes the program but sees problems when it comes to the certificate and credits.

“If we don’t have the certificates on time, which takes 12 up to 14 months now, it’s very difficult for us to file and pay accurately. That issue falls on us. No one is liable. No one is held accountable for the certificate that’s needed to follow the guidelines, but we as the employer are still held accountable for not being able to complete it,” Sadaghiani said.

Patterson said that several business owners have reached out to his office for help as they wait their certificates.