WOTC Wednesday: Minimum number of hours an employee needs to work to be eligible for the Work Opportunity Tax Credit?

CMS’s Brian Kelly answers your questions about the Work Opportunity Tax Credit.

Today’s WOTC Wednesday question: Is there a minimum amount of hours an employee needs to work to be eligible for the Work Opportunity Tax Credit?

CMS Responds: One of the questions that we get that’s pretty common is “Is There a Minimum Amount of Hours an Employee Needs to Work to Be Eligible for WOTC Tax Credit?” The answer is absolutely yes. You have to work a minimum of 120 hours for the employer to receive 25% of the employee’s gross wages up to the first $6,000. So if we hired somebody, and they worked over 120 hours and made $1,000 that tax credit is worth $250, which is 25% of that first $1,000.

 

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