WOTC Wednesday: Is WOTC Available for Part Time Employees?

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
10 $15 150 12 40 40
15 $15 225 8 26.6 26.5
20 $15 300 6 20 20
25 $15 375 4.8 16 16
30 $15 450 4 13.3 13.5
35 $15 525 3.4 11.4 11.5
40 $15 600 3 10 10

 

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