Form 85 - Idaho Small Employer New Jobs Tax Credit - 2015 Page 3
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07-23-15
Instructions for Idaho Form 85
GENERAL INSTRUCTIONS
But equal to or
If the annual
less than an
salary is greater
Then the credit
Form 85 is used to calculate the Idaho small employer new jobs
than …
average rate of ...
earned is ...
tax credit (SE-NJTC) earned or allowed. Each member of a
$24.04 per hour
$28.85 per hour
$1,500
unitary group of corporations that earns or is allowed the credit
must complete a separate Form 85.
An average rate of
$36.06 per hour
$2,000
$28.85 per hour
If the project period began during this tax year and didn't cover a
An average rate of
period of at least nine months, you don't qualify for the SE-NJTC
$43.27 per hour
$2,500
$36.06 per hour
this year.
An average rate of
$3,000
$43.27 per hour
QUALIFYING TAXPAYERS
To qualify for the SE-NJTC, you must certify by filing Form 89SE
that you will meet the tax incentive criteria at the project site
during the project period. If you haven't filed Form 89SE with the
RECAPTURE
Tax Commission, or you've been notified that you don't qualify for
You must compute recapture if you don't maintain the required
level of qualified new employees for five full years from the date
the small employer incentives, you can't claim this credit.
the project period ends.
QUALIFYING NEW EMPLOYEES FOR THE SE-NJTC
Also, you must compute recapture if you claimed the SE-NJTC
To qualify for the credit, the new employee must:
in an earlier year and don't meet the tax incentive criteria you
• Qualify as a new employee for purposes of the small employer
certified to on Idaho Form 89SE.
tax incentive criteria discussed above,
• Earn more than $24.04 per hour worked, and
If you claimed the SE-NJTC and recapture is now required, file
• Have worked a minimum of nine months during the tax year in
Form 85R.
which the credit is claimed.
SPECIFIC INSTRUCTIONS
CALCULATING THE CREDIT
The Employer Quarterly Unemployment Insurance Tax Reports
Instructions are for lines not fully explained on the form.
and the Unemployment Insurance Wage Reports filed with the
Idaho Department of Labor are used to compute the number
CREDIT AVAILABLE SUBJECT TO LIMITATION
of employees. However, only those employees who meet the
Line 1. Determine the average number of qualifying employees
definition of “new employee” can be included when computing
during the tax year by adding the number of qualifying
the SE-NJTC. Don't include any employees who don't work
employees reported for each month on your Idaho Employer
Quarterly Unemployment Insurance Tax Reports and dividing
primarily in the project site. You must keep records to support
the computations.
that amount by the number of months of operation during the
tax year. Don't include any employees who weren't employed
The number of employees employed primarily at the project
primarily at the project site.
site during a tax year is the average of the number of such
employees reported to the Idaho Department of Labor during the
Line 2. Determine the average number of qualifying employees
12 months of the tax year. If the project period began during the
during the three preceding tax years by dividing the total of the
tax year, the number of employees for the year is the average
average number of qualifying employees reported on your Idaho
Employer Quarterly Unemployment Insurance Tax Reports for
number actually employed during the months of the project
period. However, you can't earn the credit if the project period
each preceding year by three. If the project period existed less
didn't cover at least nine months during the first tax year. These
than three tax years, use the number of tax years in operation.
employees may qualify for the credit the next year.
Line 3. Determine the average number of qualifying employees
The number of qualifying new employees is the increase in the
during the preceding tax year by adding the number of qualifying
employees reported for each month on your Idaho Employer
number of qualifying employees for the current tax year over the
Quarterly Unemployment Insurance Tax Reports and dividing
greater of the following:
that amount by the number of months of operation during the
• The average number of qualifying employees for the three
preceding tax year. Enter zero if the project period covered less
preceding tax years, or
than nine months the preceding tax year.
• The average number of qualifying employees for the preceding
tax year.
Line 4. No credit is allowed unless the number on this line
equals or exceeds one. If it's more than one, the number is
The number of qualifying new employees must be rounded down
rounded down to the nearest whole number.
to the nearest whole number.
Line 5. To complete lines 5a through 5d, you must be able
CREDIT RATES
to identify each individual who's a qualifying new employee
Each qualifying new employee must be identified in order to
and the annual average salary earned during the tax year by
that individual. Enter the number of qualifying new employees
determine the credit allowed, which is based on the annual
salary of the employee as shown in the following table.
according to their annual salary earned for the tax year. The
amounts listed on lines 5a through 5d can't exceed the number
CARRYOVER PERIODS
on line 4.
The SE-NJTC earned but not used against tax may be carried
forward for 10 tax years. For purposes of the carryover period, a
short tax year counts as one tax year.
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