In March 2017,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 2017.Gray Corporation's work opportunity tax credit amounts for 2017 is:

Question

Quizplus · Accepted Answer

The work opportunity tax credit (WOTC) is available for employers who hire individuals from certain target groups, including long-term family assistance recipients. The credit is equal to a percentage of the employee's first-year wages, up to a certain amount. For long-term family assistance recipients, the credit is 40% of their first-year wages, up to $12,000 per employee. In this case, both employees were paid $11,000 in 2017, so the maximum credit for each employee is $4,400 (40% of $11,000). Therefore, the total WOTC amount for both employees is $8,800 ($4,400 x 2), which is closest to answer option B.

In March 2017,Gray Corporation Hired Two Individuals,both of Whom Were