What is the maximum YEP percentage?

• A. 6%
• B. 5%
• C. 4%
• D. 3%

Answer: (A)

The idea being tested is that many tax benefits are capped at a maximum percentage. That cap is the ceiling you can’t exceed, so the benefit you actually get is the lesser of your eligible base and this ceiling. When you’re given several percentage options, the one that represents the highest allowable rate is the maximum you could claim under the program. That’s why choosing the largest percentage makes sense—it yields the greatest possible benefit without going over the limit set by the program. The other, smaller percentages would still be valid options, but they don’t reach the cap and thus aren’t the maximum.