If you hired an employee after February 3, 2010, you may be eligible for tax benefits under the Hiring Incentives to Restore Employment (HIRE) Act. StaffScapes will be filing the 2nd quarter 941 form next week and we want to remind you that HIRE tax credits from the first and second quarter must be filed with this quarters’ report. If we do not receive the completed form W-11 by Friday, July 16th, any first or second quarter tax credits will not be received until late in the year. Don’t miss out on money that is due to you! Submit your forms and we will take care of the rest.
To recap, the HIRE Act provides an exemption from the employer’s portion of social security taxes (6.2%) paid on wages to qualified employees paid from March 19, 2010 through December 31, 2010. A qualified employee is an employee who begins employment after February 3, 2010, and before January 1, 2011; is not hired to replace an employee unless the other employee separated from employment voluntarily or for cause; and is not related to the employer. In addition, the law requires that the employer get a statement from each eligible new hire certifying that he or she was unemployed during the 60 days before beginning work or, alternatively, worked fewer than a total of 40 hours for someone else during the 60-day period. Employers should use the IRS form W-11 to meet the certification requirements of the HIRE Act.
Businesses, agricultural employers, tax-exempt organizations, tribal governments and public colleges and universities all qualify to claim the payroll tax exemption for eligible newly-hired employees. Household employers and federal, state and local government employers, other than public colleges and universities, are not eligible. IRS.gov has more details.
If you have any questions, please contact Jake at 303-466-7864 or firstname.lastname@example.org.