All posts tagged 'HIRE Act'
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Posted @ 4/1/2010 12:18 PM By MBAHRO
HIRE Act Requires Individuals to Sign an affidavit
The HIRE Act requires that an individual sign an affidavit attesting to certain requirements that would make the employer eligible for the payroll tax exemption available under the law. MBA has received several recent inquiries regarding where this affidavit can be obtained. Please be advised that the IRS is expected to issue a model affidavit to be used for this purpose (see http://www.irs.gov/businesses/small/article/0,,id=220749,00.html).
When the IRS publishes this affidavit, MBA will make it available to you. In the meantime, please exercise caution using any affidavits located on the internet, as they have not been approved by the IRS.
Posted @ 3/29/2010 1:29 PM By MBAHRO
New jobs bill, how do I get the most retention tax credits.
President Obama signed into law a new jobs bill (HIRE Act) in March of 2010. The jobs bill pays you Retention Tax Credits to hang onto your employees.
As an incentive to retain employees who qualify for Social Security tax forgiveness, the jobs bill provides up to a maximum $1,000 tax credit to employers for each qualified retained employee as a Section 38(b) business tax credit. The credit is the lesser of 6.2% of wages or $1,000.
To be eligible for the jobs bill credit the qualified retained employee must:
Be employed for 52 consecutive weeks. There is no provision for prorating the credit.
Earn wages during the last 26 week period that are at least 80% of the wages for the first 26 week period.
These jobs bill tax credits will be available to be taken on employers’ 2011 income tax returns.
The jobs bill does not allow carry back of any unused Section 38 business tax credits that are attri ...
Posted @ 3/29/2010 1:27 PM By MBAHRO
Hiring Incentives To Restore Employment Act Social Security Tax Credits, how to earn the credits.
President Obama signed into law the Hiring Incentives to Restore Employment Act in March of 2010. The Hiring Incentives To Restore Employment Act carries a Social Security tax forgiveness credit. It starts immediately for employers hiring qualified employees through the remainder of 2010.
To be a qualified employee the new employee must:
Start work after Feb. 3, 2010 and before Jan. 1, 2011.
Be previously unemployed
Not have worked more than 40 hours within the 60 days prior to the employee’s start date.
Not replace current employees unless former employees were terminated for cause or left employment voluntarily.
Not be related to the employer
Note: Qualified employees may work less than full time hours, and under certain circumstances, may be rehired from a previous lay off.
Check our article on how to obtain the maximum credits from the Hiring Incentives T ...
Posted @ 3/25/2010 5:42 PM By MBAHRO
Federal HIRE Act offers a tax credit on social security, how much can my company earn?
President Obama signed into law the Hiring Incentives to Restore Employment Act ( HIRE Act ) in March of 2010. The federal HIRE Act carries a tax credit on Social Security. It starts immediately for employers hiring qualified employees through the remainder of 2010.
The best way to generate the maximum tax credit on Social Security is to hire qualified employees early in the year, since the exemption stops on wages paid after January 1, 2011.
If an employee earning $40,000 annually is hired on April 1, 2010, the Social Security tax credit to the employer would be approximately $1,900.
If the same employee was not hired until Aug. 15, 2010, the savings would be lowered to $950.
The tax credit on Social Security can be used to offset scheduled tax deposit liabilities beginning April 1, 2010 and accrue with each payroll processed.
Employers will receive a 6.2% Employer Social Security Tax Ex ...
Posted @ 3/23/2010 5:47 PM By MBAHRO
Tax credits mean good news for employers!
On March 18, 2010 President Obama signed into law the Hiring Incentives to Restore Employment Act (HIRE Act). The HIRE Act carries two significant tax incentive components for employers: a Social Security tax forgiveness and a retention tax credit. The first starts immediately for employers hiring qualified employees through the remainder of 2010 and the second can be earned by employers who retain qualified employees for a minimum of 52 consecutive weeks. The following is an overview of how both incentives work.
Social Security Tax Forgiveness:
Employers will receive a 6.2% Employer Social Security Tax Exemption on wages paid to “qualified employees” after March 18, 2010 and before January 1, 2011, up to the Social Security maximum of $106,800. The maximum credit per qualified employee is $6,621. To be a qualified employee the new employee must:
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