How does application of the payroll tax exemption to wages paid to a qualified employee affect the availability of the Work Opportunity Tax Credit with respect to that employee?
• If an employer applies the payroll tax exemption to wages paid to a qualified employee, such wages paid to the employee during the one-year period beginning with the employee’s hiring date may not be taken into account for purposes of the Work Opportunity Tax Credit. An employer that wishes to claim the Work Opportunity Tax credit with respect to a qualified employee can elect out of the payroll tax exemption with respect to wages paid to that qualified employee.
Related Questions
- Does the payroll tax exemption apply to wages paid to an employee who was previously laid off and then rehired by the same or related employer after a 60-day period?
- Does the payroll tax exemption apply to wages paid to a qualified employee hired to replace an existing worker whose employment terminated?
- How does the employer claim the payroll tax exemption for wages paid to qualified employees?
