ITG FAQ #5 Answer-Who is considered to be a "nonqualified employee"?


Notice: Historical Content

This is an archival or historical document and may not reflect current law, policies or procedures.

The following individuals are not qualified employees for purposes of the Indian Employment Credit:

  • Any employee to whom you pay or incur wages (including wages for services outside an Indian reservation) at a rate that would cause you to pay the employee more than $30,000 if the rate applied for the entire year (this wage limit may be adjusted for inflation for tax years beginning after 1999)
  • Certain related taxpayers
  • Certain dependents
  • Any 5% owner
  • Any individual who performs services involving certain gaming activities
  • Any individual who performs services in a building which houses certain gaming activities

Note: The Indian employment credit will expire for qualified wages and health care costs paid or incurred in tax years beginning after 2021.

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