On March 31, 2022, Gusto’s Public Policy Lead Steve Abbott testified before the California Governance and Finance Committee in support of SB 1349, a bill that would create a Work Opportunity Tax Credit for California.
Small Businesses are facing a new set of challenges — labor shortages, supply chain constraints, and inflation. Gusto’s own data show that payroll reserves are the lowest they have been since the pandemic began, and although employees in California are quitting at lower rates than they were this past summer, data for this month show that the rate is still three times higher than February 2020. The creation of the CA Work Opportunity Tax Credit could not come at a more needed time to aid small businesses in recruiting and retaining employees from targeted groups. The $1,000 credit in addition to the Federal WOTC is a meaningful difference to a small business owner, allowing them to increase wages or offer additional benefits, such as healthcare or retirement plans, which are essential to maintaining competitiveness in this tight labor market.
Read the full statement here: