The recently enacted HIRE Act, which allows employers to avoid paying their 6.2% share of Social Security Tax on certain newly hired employees, also applies to employees hired on a temporary basis who have no prior work experience, such as students hired for the summer. Students who didn't work because they were taking classes are not disqualified.

 

*   The employee must sign a statement which certifies that they have been unemployed or have not worked for anyone for more than 40 hours during the 60-day period ending on their date of hire. New IRS Form W-11 can be used to fulfill this requirement;

 

*    If a new hire replaces someone, the credit is allowed only if the worker quit or was fired for cause;

*    The new hire is not required to work a set number of hours or a set number of weeks-part-time employment qualifies;

 

*   There is no minimum age requirement to be a qualified employee;

 

 *   The employee may not be a family member or related in certain other ways to the employer.

 

As always, please call us if you have any questions on this topic or need further information to determine if you qualify for this tax break. The following link to the IRS website containing additional guidance is provided for your convenience.