At CMS, as Work Opportunity Tax Credit (WOTC) experts and service providers since 1997, we receive a lot of questions via our website’s chat box that we try to answer:
Our retail business (grocery store) hires lots of part time seasonal workers to help over the holiday season. Are We Still Eligible When We Hire Seasonal Workers? They typically work November 10 – January 10th.
CMS Says: So approximately 8 weeks of employment, depending on how many hours accumulate, you could still be eligible for WOTC Tax Credits with your qualified seasonal hires. Keep in mind they would need to work a minimum of 120 hours in order for you to be eligible for a tax credit of 25% of their first $6,000 in wages or $1,500. If they are able to accumulate 400 hours, that increases to 40% of the first $6,000 in wages, or $2,400. Additionally, if they have worked for you before, many seasonal workers end up working for the same employers year after year, they would not be eligible. Only new hires are eligible for the Work Opportunity Tax Credit.
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