ITG FAQ #8 Answer-What are "qualified first-year wages"?


Qualified first-year wages are qualified wages paid or incurred by the employer for work performed by a targeted group employee during the 1-year period beginning on the date the individual begins work for the employer.

Qualified wages are generally wages subject to the Federal Unemployment Tax Act (FUTA) without regard to the FUTA dollar limit, but not more than $6,000 each tax year for each employee ($3,000 each tax year for a summer youth employee).

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