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State of California Franchise Tax Board

Hiring Credit - IDR Questions


We listed suggested questions to verify the credit or deduction claimed.  We may ask additional questions depending on facts and circumstances.

  1. A schedule supporting the Enterprise Zone Hiring Credit claimed on Form 3805Z [1]. The schedule needs to include the following information:

    1. The employee name.

    2. The date the employee was hired.

    3. The date of termination, if applicable.  If so, the reason for termination.

    4. The number of hours the employee worked for each month of employment.

    5. The smaller of the hourly rate of pay for each month of employment or 150%[2] of the minimum wage.

    6. The total qualified wages per month for each month of employment.

  2. A copy of Worksheet V: Apportionment for Enterprise Zones, used to compute Form 3805Z.

  3. For employees [Identify the sample or universe]:

          a.  A copy of the voucher, Form TCA EZ1 [1].

  4.       b.  The location of the employee's job site and job description.

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