CMS’s Brian Kelly answers your questions about the Work Opportunity Tax Credit.
Today’s WOTC Wednesday question: What Is The Minimum Wage An Employee Needs to Receive for My Company To Use the WOTC Tax Credit?
CMS Responds: One of the WOTC Questions we see is “What Is The Minimum Wage An Employee Needs to Receive for My Company To Use this Tax Credit?” It’s not based on how much we’re paying the employee. It’s really truly based on the number of hours the employee works. So the 120 hours for you to receive 25% of the gross wages up to the first $6,000. Or if they work for you for 400 or more hours that tax credit would be 40% of the first $6,000 in wages. Which is $2,400. So, it really doesn’t matter what your wage base is, it is really determinant on how many hours the employee is working, and reaching those goal limits.
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