In March 2018, Gray Corporation hired two individuals, both of whom were certified as long-term recipients of family assistance benefits. Each employee was paid $11,000 during 2018. Gray Corporation's work opportunity tax credit amounts for 2018 is:

Question

Quizplus · Accepted Answer

The work opportunity tax credit for certified long-term family assistance recipients is 40% of the first-year wages up to $6,000. Each employee was paid $11,000, but only $6,000 of their wages count for the credit. Therefore, the total credit for both employees would be 40% of $12,000 ($6,000 + $6,000) which is $4,800. Thus, the correct answer is option B.

In March 2018, Gray Corporation Hired Two Individuals, Both of Whom