CMS’s Brian Kelly answers your questions about the Work Opportunity Tax Credit.
Today’s WOTC Wednesday question: Is WOTC Available for Part Time Employees?
CMS Responds: “Question we get is ‘Is WOTC applicable for part-time employees?‘ And the answer is absolutely! It’s all based on the number of hours an employee works. So, as a minimum, the employee works 120 hours, for their fiscal year, that would receive 25% of their gross wages, which if the employee made $1,000, you’d get a partial credit of 25% which would be a $250 tax credit. So it’s all about the hours worked, not necessarily how many per week.”
One thing to be aware of is that it may take a part time employee slightly longer to reach the 120 or 400 hours required in order to use your certification.
|Weekly Hours||Hourly Wage Example||Weekly Wages||Weeks to 120 Hours||Weeks to 400 Hours||Weeks to $6,000 in Wages|
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