Dear Congressman
As an employer in (state) who serves people living in your district, I want to let you know that my business continues to feel the economic impact of the pandemic which is now being prolonged by supply chain shortages. That is why I am urging you to work with the Senate to make sure that the Employee Retention Credit is restored and the HIRE Act is included in the final version of the Build Back Better Act.
Employers such as myself have found the Employee Retention Credit is indispensable to our retaining workers on payroll during the pandemic while we continue to suffer reduce revenues. Originally, the major factor impacting our revenues was the pandemic, but now we are seeing loses because of supply chain shortages. That is why we were shocked and disappointed that Congress retroactively repealed the Employee Retention Credit for the fourth quarter of 2021 as part of the Bipartisan Infrastructure Framework bill. We have retained workers in anticipation of the retention credit helping us to pay their wages. It’s retroactive repeal on November 15 will have a significant adverse impact on my bottom line and is simply unfair. There continues to be a need for the credit going forward because of supply chain shortages which are having a direct impact on my profitability. Without it, we may be forced to lay off workers.
Similarly, the HIRE Act which was included in the version of the Reconciliation bill that was passed by the Ways and Means Committee would provide us with the resources we need to pay the higher wages entry level workers are seeking when we are lucky enough to find them. The HIRE Act, which was dropped out of the final version of the House BBB Act, would increase the value of the Work Opportunity Tax Credit to 50% (currently 40%) of $10,000 (currently $6,000) for hiring people on public assistance programs including unemployed and disabled veterans. Given the shortage of entry level job applicants, we are turning more and more to those eligible for the Work Opportunity Tax Credit most of whom have few if any job skills or work experience. Not only has the cost of training them gone up, but also the wages and benefits we need to provide have gone up dramatically. An enhanced WOTC would provide us with the resources we need to meet these wage and benefit demands and reduce the inflationary impact on the prices we must charge in order to make ends meet.
That is why I am urging you to tell leadership that the employee retention credit should be extended in its current form and the HIRE Act should be included in final Build Back Better Act.
Sincerely