Worksheet For The New Jobs Tax Credit - 2000 Page 5
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1
2
3
4
5Business Tax ID No.
Certificate No.
___________________
____________
EXAMPLE 2 - EXISTING BUSINESS
NAME OF
JOB TITLE/
JOB
START
W-2
PAYROLL INFORMATION FOR THE YEAR
EMPLOYEE
DESCRIPTION
ID NO.
DATE
WAGES
2000
1999
1998
1997
1996
1995
1994
1993
F
Vice President
6
5/10/00
$
46,000
$
46,000
G
Asst. Manager
7
5/12/00
37,000
37,000
H
Clerk 2
8
5/12/00
15,000
15,000
I
Typist 2
9
8/15/00
9,000
9,000
J
Clerk 3
10
9/1/00
7,000
7,000
Others
206,000
130,000
135,000
140,000
126,000
98,000
77,000
60,000
Total payroll
$
114,000
$
320,000
$
130,000
$
135,000
$
140,000
$
126,000
$
98,000
$
77,000
$
60,000
Tax rate
.015
.015
.015
.015
.015
.015
.015
.015
Computed payroll tax
$
4,800
$
1,950
$
2,025
$
2,100
$
1,890
$
1,470
$
1,155
$
900
Applicable base year limitation for 2000 (to line 22 of worksheet)
$
2,100
The business has been in existence since 1993, but there were no new jobs created until 2000. The 5 new jobs created qualify for
the new jobs tax credit and since there is an increase in payroll for 2000 the business is eligible for the credit. The base year limitation
for 2000 is $2,100, the computed payroll tax for 1997, which is higher than the other years' before 2000.
Business can claim the full amount of the available tax credit of $1,710, since it is less than the credit limitation (tax due of $4,800 less
base year limitation of $2,100 = $2,700).
2000JC1
8
Rev. 1-12-01
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