006.05.204-1. DEFINITIONS.
AR ADC 006.05.204-1Arkansas Administrative Code
Ark. Admin. Code 006.05.204-1
006.05.204-1. DEFINITIONS.
(3) ‘Average hourly wage’ means the average wage of the net new permanent employees based on payroll for the most recent quarter reported to the Employment Security Division, and is computed by using the total of the net new permanent employees' reported taxable earnings, including overtime pay, divided by the number of weeks worked, divided by the average hours worked per week per net new permanent employee; Salaried employees are deemed to have worked forty (40) hours per week for the purpose of calculating ‘average hourly wage’ and ‘most recent quarter reported’ in the tax year during which the income tax credits were earned;
(10) ‘New permanent employee’ means a employee who is an Arkansas resident when hired and who was hired as a result of the project and has worked an average of at least thirty (30) hours per week for at least twenty-six (26) consecutive weeks. To be counted as a new permanent employee for the purpose of qualifying for the tax credits and incentives, the employee must have been an Arkansas resident during the tax year in which the tax credits or incentives were earned.
(11) ‘Net new permanent employee’ means a new permanent employee who was not employed by the taxpayer during the preceding tax year. However, if during the tax year in which a new permanent employee was hired the employee did not work the requisite number of weeks to qualify as a new permanent employee for that tax year, then that employee may be counted as a net new permanent employee for the tax year in which he or she meets the requirement. Example: An employee hired August 1, 1993 could not qualify as a new permanent employee for 1993 because he could not have worked 26 consecutive weeks in 1993. However, if in 1994 that employee completes his 26th consecutive week of work with an average of 30 hours of work per week since the date he was hired, that employee will qualify as a net new permanent employee for the 1994 tax year. The number of net new permanent employees shall be equal to the total number of new permanent employees for the current tax year minus the total number of new permanent employees for the previous tax year.
Current with amendments received through January 15, 2024. Some sections may be more current, see credit for details.
Ark. Admin. Code 006.05.204-1, AR ADC 006.05.204-1
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