"NEWS NOTES"
From the office of Angle, Zaebst & Associates |
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Please call us if you hired an employee after February 3, 2010 |
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If you hired an employee after February 3 and before January 1, 2011, you may qualify for a credit that exempts employers from their share of social security and medicare tax on wages paid from March 19, 2010 through December 31, 2010.
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It is not necessary that the individual was previously employed and has lost his or her job to be a qualified employee.
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The employee must not have worked more than a total of 40 hours during the 60 days prior to being hired by your company, and must sign an affidavit to this effect on form W-11. Give a copy of this along with form W-4 to your payroll services provider.
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The employee must not be a family member of or related in certain other ways to the employer.
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The payroll tax exemption applies to wages paid to an employee who was previously laid off and then rehired by the same or a related employer after a 60-day period. (The 40 hour rule applies.)
We will continue to keep our clients informed about relevant changes resulting from the HIRE Act. Please click on the quick link above entitled NEWS and click on the article entitled IRS issues forms, instructions for HIRE Act employer tax incentives featured on our website for more information. |
