San Francisco Business Receipts & Payroll Tax - 1999 Summer Youth Employment Tax Credit Instructions

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SAN FRANCISCO BUSINESS RECEIPTS & PAYROLL TAX
1999 SUMMER YOUTH EMPLOYMENT TAX CREDIT INSTRUCTIONS
DEFINITIONS:
A. Summer Job: Any new job created after the second Monday of May of the calendar year and before July 1 of
that calendar year which was not performed by a predecessor employee. A job, in addition to its ordinary
definition, also includes internships, clerkships and apprenticeships.
B. Youth: Any individual whom, during the duration of the summer employment credit period, is at least 14 years
old and no
older than 21.
C. Disadvantaged Youth: Any youth whose family income is not greater than 80% of median family income as
provided in
the most recently published estimate of median family income for San Francisco by the United states Department
of
Housing and Urban Development or any successor agency.
BASE YEAR TEST
To determine whether a summer job was performed by a predecessor employee, an employer must make two tests,
involving three calculations in the “Worksheet for Summer Youth Employment Tax Credit”.
Lines 1 through 3. The employer must calculate the number of summer jobs it had in San Francisco in 1995. The
employer shall be able to claim in subsequent years only the number of summer jobs that exceed the number the
employer had in 1995.
Lines 4 through 8. In addition the employer must calculate the highest number of full-time equivalent employees
it had in San Francisco for the months of March and April 1999. The Summer Youth Employment Tax Credit shall
only be available to the extent that the number of qualified summer youth jobs plus other full-time equivalent
employees employed in San Francisco from second Sunday in May, 1999, through second Sunday in September,
1999, exceeds the highest number of full-time equivalents employees it had in March and April, 1999, unless the
employer can demonstrate to the Tax Collector that jobs performed by summer youth employees were not in
replacement of jobs performed by other employees.
Lines 9 through 11. Finally, The employer must calculate wages paid for summer jobs in 1995. The employer
shall be able to claim in subsequent years only the wages that exceed the 1995 base year wages for summer jobs.
CALCULATING YOUR SUMMER YOUTH EMPLOYMENT TAX CREDIT:
Line 12. Where the full-time job base year limits the number of jobs, for purposes of determining the credit
allowable, it shall be assumed that each qualifying job was paid an amount equal to the average for all summer jobs
prior to application of the full-time job base year limit.
Lines 13 through 15. You are responsible for determining whether the youth you are claiming are program
eligible. Please refer to this excerpt from a table from Department of Housing and Urban Development (HUD) with
current annual family income upper limit for meeting the definition of disadvantaged (80% of median income):
household
1 person 2 persons 3 persons 4 persons 5 persons 6 persons 7 persons 8 persons
Size
income
Limit
38,100.00 43,500.00 48,950.00 54,400.00 58,750.00 63,100.00 67,450.00 71,800.00
The income limit figures do not include any wages earned by the youth during this summer employment.
SYE1-99

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