Not necessarily. We only charge on credits that are already certified. Pending applications will be charged when they are determined at the end of the following quarter.
We request wages and hours every quarter, but this doesn’t always result in a tax credit because they may not be certified yet or have reached their 120 hour min. requirement.
For certified credits, an employee needs to work at least 120 hours before qualifying.
If an employee only works 100 hours in their first quarter, the employer will not receive a tax credit for them. However, we still record these hours/wages for the next quarter. The employee can earn a tax credit if they worked at least another 20 hours. This is why it is very important to enter in all gross wages and hours every quarter.
If your employee already surpassed 120 hours by the time they become certified, then you will be charged for that credit and every quarter after that until they either reach their maximum potential, reach their one year limit, or terminate.
We start the process for billing the day after the calendar quarter ends. You will be requested to enter in hours and wages. Once they are entered, we will process your payment or send an invoice in the following 24-48 hours.