How is the deduction calculated in order for an employer to get a deduction?
The Alabama Department of Revenue states that, "to calculate the income tax due, the employer may claim a deduction from income for 50% of the gross wages paid to an unemployed person if the wages are $14 or more per hour."
The deduction is limited to 40% if the wages paid are between $12 and $14 per hour. If the wages paid are between $10 and $12 per hour, the deduction is limited to 35% of the gross wages paid.
There is no deduction allowable under this Act to employers who hire employees for jobs paying less than $10 per hour.
Also, the job filled by the unemployed person who is hired must be a full-time job. No deduction is allowable under this Act to an employer who hires an unemployed person to work less than 37.5 hours per week.