W. Va. Code R. § 110-13I-4

Current through Register Vol. XLI, No. 49, December 6, 2024

Section 110-13I-4 - Amount

4.1. Maximum amount of credit. - The Credit allowed a taxpayer in a given taxable year shall not exceed the lesser of the following:

(i) the sum of the Adjusted Allowances as provided in Section 4.2 of this rule for the qualified employees employed by the taxpayer during that taxable year; or

(ii) ten thousand dollars ($10,000).

4.2. Adjusted Allowance.

4.2.1. If a qualified employee was employed by the taxpayer for all twelve months of the taxable year, the Adjusted Allowance for that qualified employee is equal to the Base Allowance as provided in Section 4.3 of this rule.

4.2.2. If a qualified employee was employed by the taxpayer for less than twelve months of the taxable year, the Adjusted Allowance for that qualified employee is the Base Allowance reduced, but not below zero, by twenty percent (20%) of the Base Allowance for each month of the taxable year during which the qualified employee was not employed by the taxpayer.

MonthsEmployed	AdjustedAllowance
11	80% of Base Allowance
10	60% of Base Allowance
9	40% of Base Allowance
8	20% of Base Allowance
7 or fewer	Zero

4.2.3. A taxpayer shall be regarded as employing a qualified employee for a given month of the taxable year if:

(i) during the month, the employee accumulates at least one hundred and forty (140) work hours in the course of his or her employment with the taxpayer, and

(ii) in compensating the employee, the taxpayer complies with all applicable federal and state laws. A taxpayer shall not be regarded as employing a qualified employee for any month in which the employee accumulates less than one hundred and forty (140) work hours in the course of his or her other employment by the taxpayer, regardless of the number of work hours accumulated by the employee in the course of his or her employment by any other employer.

4.2.4. For the purpose of determining the number of months that a qualified employee was employed during the current taxable year, a taxpayer may regard as part of the current taxable year any month(s) in the immediately preceding taxable year that have not been considered in determining the taxpayer's Credit for that taxable year. No months of any taxable year other than the current taxable year or the immediately preceding taxable year may be regarded as part of the current taxable year. A given month may be regarded as part of only one taxable year.

4.2.5. (Example) The Qualified Employee works for the Taxpayer for the last four months of Taxable Year 1. In the first of these months, the Qualified Employee accumulates 100 work hours in the course of his or her employment with the Taxpayer. In each of the remaining three months, the Qualified Employee accumulates 142 work hours. The Qualified Employee also works for the Taxpayer for the first six months of Taxable Year 2 and accumulates 142 work hours during each of those months. The Taxpayer does not claim a Credit for Taxable Year 1. In determining its Credit for Taxable Year 2, the Taxpayer may regard as part of Taxable Year 2 the last four months of Taxable Year 1, which have not been considered in determining the Taxpayer's Credit for Taxable Year 1. Of these four months, the three months in which the Qualified Employee accumulated more than 142 work hours per month (the second, third and fourth months) are regarded as months for which the Qualified Employee is employed by the Taxpayer. The Qualified Employee did not accumulate at least 140 work hours in the first month; therefore the Taxpayer is not regarded as employing the Qualified Employee for that month. The Taxpayer also is regarded as employing the Qualified Employee for the six months of Taxable Year 2. In each of those months, the Qualified Employee accumulated more than the minimum 140 work hours in the course of his or her employment with the Taxpayer. Of all of the months that are regarded as a part of Taxable Year 2, the Taxpayer employed the Qualified Employee for a total of nine months. The Adjusted Allowance for the Qualified Employee therefore is 40% of the Base Allowance.

4.3. Base Allowance. - The Base Allowance for a qualified employee is equal to fifty percent (50%) of the total amount of unemployment benefits that would be paid to an employee who receives a full sixteen (16) weeks of unemployment benefits based upon wages, during the base period used to compute the unemployment benefits, of twenty-one thousand dollars ($21,000.00). The Base Allowance resulting from the calculation is $2,160.00 for each qualified individual; the amount is based upon the unemployment benefits rates in effect July 1, 1995 and is subject to change if those rates change.

W. Va. Code R. § 110-13I-4