Question - In May 2013, Blue Corporation hired Cathy, Angelina and Brad, all of whom are certified as long-term family assistance recipients. Each employee is paid $12,000 during 2013. Cathy and Brad continued to work for Blue Corporation in 2014, earning $14,000 each. Blue hired no additional employees during 2014.
Compute Blue Corporation's work opportunity tax credits for 2013 and 2014.
Assume Blue Corporation pays total wages of $500,000 to its employees during 2013 and $560,000 during 2014. How much may Blue Corporation claim as a wage deduction for 2013 and 2014 if the work opportunity lax credit is claimed in both years?