Fillable Form 5884 - Work Opportunity Credit

Form 5884 (2013)

Page

If you complete Form 8850, it generally must be signed

Wages paid to or incurred for services performed by a

•

by you and the individual and submitted to the SESA by

summer youth employee before or after any 90-day

the 28th calendar day after the individual begins work. If

period between May 1 and September 15; and

the SESA denies the request, it will provide a written

Wages for services of replacement workers during a

•

explanation of the reason for denial. If a certification is

strike or lockout.

revoked because it was based on false information

Member of Controlled Group or Business

provided by the worker, wages paid or incurred after the

date you receive the notice of revocation do not qualify

Under Common Control

for the credit.

For purposes of figuring the credit, all members of a

Targeted group employee. An employee is a member of

controlled group of corporations (as defined in section

a targeted group if he or she is a:

52(a)) and all members of a group of businesses under

common control (as defined in section 52(b)), are treated

Long-term family assistance recipient,

•

as a single taxpayer. As a member, compute your credit

Qualified recipient of Temporary Assistance for Needy

•

based on your proportionate share of qualified wages

Families (TANF),

giving rise to the group’s work opportunity credit. Enter

Qualified veteran,

•

your share of the credit on line 2. Attach a statement

showing how your share of the credit was figured, and

Qualified ex-felon,

•

enter “See attached” next to the entry space for line 2.

Designated community resident,

•

Vocational rehabilitation referral,

•

Specific Instructions

Summer youth employee,

•

Current Year Credit

Supplemental Nutrition Assistance Program (SNAP)

•

benefits (food stamps) recipient, or

Lines 1a, 1b, and 1c

SSI recipient.

•

Enter on the applicable line and multiply by the

percentage shown the total qualified first- or second-year

See the Instructions for Form 8850 and section 51(d) for

wages paid to or incurred for employees who are

details and restrictions.

members of a targeted group. Qualified first-year wages

Qualified Wages

are qualified wages you paid to or incurred for work

performed during the 1-year period beginning on the date

Wages qualifying for the credit generally have the same

the individual begins work for you. Qualified second-year

meaning as wages subject to the Federal Unemployment

wages are qualified wages you paid to or incurred for

Tax Act (FUTA). If the work performed by any employee

certified long-term family assistance recipients for work

during more than half of any pay period qualifies under

performed during the 1-year period beginning on the day

FUTA as agricultural labor, that employee’s wages

after the last day of the 1-year wage period.

subject to social security and Medicare taxes are qualified

wages. For a special rule that applies to railroad

The amount of qualified first-year wages and the

employees, see section 51(h)(1)(B). Qualified wages for

amount of qualified second-year wages that may be

any employee must be reduced by the amount of any

taken into account for any employee certified as a

work supplementation payments you received under the

long-term family assistance recipient is limited to $10,000

Social Security Act for the employee.

per year.

The amount of qualified wages for any employee is

The amount of qualified first-year wages that may be

zero if:

taken into account for an employee certified as a qualified

veteran is limited to the following amounts.

The employee did not work for you for at least 120

•

hours,

$6,000 for a qualified veteran certified as being either

•

(a) a member of a family receiving SNAP assistance (food

The employee worked for you previously,

•

stamps) for at least a 3-month period during the

The employee is your dependent,

•

15-month period ending on the hiring date, or

The employee is related to you (see section 51(i)(1)), or

•

(b) unemployed for a period or periods totaling at least 4

weeks (whether or not consecutive) but less than 6

50% or less of the wages the employee received from

•

months in the 1-year period ending on the hiring date.

you were for working in your trade or business.

$12,000 for a qualified veteran certified as being entitled

•

Qualified wages do not include:

to compensation for a service-connected disability and

Wages paid to or incurred for any employee during any

•

hired not more than 1 year after being discharged or

period for which you received payment for the employee

released from active duty in the U.S. Armed Forces.

from a federally funded on-the-job training program;

$14,000 for a qualified veteran certified as being

•

Wages paid to or incurred for a summer youth employee

•

unemployed for a period or periods totaling at least 6

for services performed while the employee lived outside

months (whether or not consecutive) in the 1-year period

an empowerment zone;

ending on the hiring date.

Wages paid to or incurred for a designated community

•

resident for services performed while the employee lived

outside an empowerment zone or rural renewal county;

Form 5884 - Work Opportunity Credit - 2013 Page 2

Related Articles

Related forms

Related Categories