Question

During 2020, Lincoln Company hires 12 individuals who are certified to be members of a qualifying targeted group. Each employee works in excess of 600 hours and is paid wages of $13,600 during the year. Lincoln Company's work opportunity credit is_____.

Answer 1

The work opportunity credit is $28,800

Step-by-step explanation:

As we can see that the employees work more than 400 hours so here the company would be eligible for taking the full credit

The credit should be claimed till 40% of the first $6,000 that could allowed maximum credit of $2,400 per employee

Work opportunity credit is

= (6000 × 40%) × 12 individuals

= $28,800

Hence, the work opportunity credit is $28,800