WOTC Wednesday: How Long Must an Eligible Employee Work Before Receiving a WOTC Tax Credit?

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

Today’s WOTC Wednesday question: How Long Must an Eligible Employee Work Before You Receive a WOTC Tax Credit?

CMS Responds: How Long Must an Eligible Employee Work Before Your Company Can Claim the Work Opportunity Tax Credit? There’s a couple of thresholds. Number One when we submit it to the Department of Labor when they qualify or not, we get confirmation back from the DOL, that the candidate does qualify. And then we have how many hours the employee works. The minimum hours is 120 hours for your organization to receive 25% of their gross pay up to the first $6,000. The second tier is if they work over 400 hours, which is basically a quarter, 13 weeks of full time pay. Your tax credit would then increase to $2,400 (or 40%) the first $6,000 in wages.


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