In May 2015, Blue Corporation hired Camilla, Jolene, and Tyrone, all of whom are certified as long-term family assistance recipients. Each employee is paid $12,000 during 2015. Camilla and Tyrone continued to work for Blue Corporation in 2016, earning $14,000 each. Blue hired no additional employees during 2016.

a.Compute Blue Corporation’s work opportunity tax credits for 2015 and 2016.

b.Assume Blue Corporation pays total wages of $500,000 to its employees during 2016 and $560,000 during 2016. How much may Blue Corporation claim as a wage deduction for 2015 and 2016 if the work opportunity tax credit is claimed in both years?

Answer rating: 100% (QA)

a The work opportunity tax credit for 2015 is calculated as follows 3 qualified employee... View the full answer