HIRE (Hiring Incentives to Restore Employment) Act - latest information from DEED
Friday, April 2, 2010
Here is the latest. Please feel free to pass along to your business colleagues and contacts.
All the information on the HIRE (Hiring Incentives to Restore Employment) ACT, which was enacted into law on 3/18/10 will be on the IRS.gov site: http://www.irs.gov/newsroom/article/0,,id=220326,00.html
Here is what it says about forms:
“Employers claim the payroll tax benefit on the federal employment tax return they file, usually quarterly, with the IRS. Eligible employers will be able to claim the new tax incentive on their revised employment tax form for the second quarter of 2010. Revised forms and further details on these two new tax provisions will be posted on the IRS.gov during the next few weeks”.
Regarding the Work Opportunity Tax Credit (WOTC), apparently a business cannot take both a HIRE and WOTC credit on the same employee, so you will have to check out which results in a better tax credit.(If you need more information on WOTC, please contact me)
I can see where if someone isn’t eligible under WOTC, then HIRE would work. “Employers who hire unemployed workers this year (after Feb. 3, 2010 and before Jan. 1, 2011) may qualify for a 6.2-percent payroll tax incentive, in effect exempting them from their share of Social Security taxes on wages paid to these workers after March 18, 2010. Plus for each worker retained for at least a year, businesses may claim an additional general business tax credit, up to $1,000 per worker, when they file their 2011 income tax returns.
The two tax benefits under HIRE are especially helpful to employers who are adding positions to their payrolls. New hires filling existing positions also qualify but only if the workers they are replacing left voluntarily or for cause.
Please watch the IRS site for revised forms and other details under HIRE
Feel free to contact me with questions.
Cindy Brey
Business Service Specialist
MN Dept. of Employment & Economic Development
Brainerd WorkForce Center
204 Laurel Street, Suite 21
Brainerd, MN 56401
Phone: 218-825-6783
Cell: 218-296-2210
FAX: 218-828-6194
E-mail: Cindy.Brey@state.mn.us
All the information on the HIRE (Hiring Incentives to Restore Employment) ACT, which was enacted into law on 3/18/10 will be on the IRS.gov site: http://www.irs.gov/newsroom/article/0,,id=220326,00.html
Here is what it says about forms:
“Employers claim the payroll tax benefit on the federal employment tax return they file, usually quarterly, with the IRS. Eligible employers will be able to claim the new tax incentive on their revised employment tax form for the second quarter of 2010. Revised forms and further details on these two new tax provisions will be posted on the IRS.gov during the next few weeks”.
Regarding the Work Opportunity Tax Credit (WOTC), apparently a business cannot take both a HIRE and WOTC credit on the same employee, so you will have to check out which results in a better tax credit.(If you need more information on WOTC, please contact me)
I can see where if someone isn’t eligible under WOTC, then HIRE would work. “Employers who hire unemployed workers this year (after Feb. 3, 2010 and before Jan. 1, 2011) may qualify for a 6.2-percent payroll tax incentive, in effect exempting them from their share of Social Security taxes on wages paid to these workers after March 18, 2010. Plus for each worker retained for at least a year, businesses may claim an additional general business tax credit, up to $1,000 per worker, when they file their 2011 income tax returns.
The two tax benefits under HIRE are especially helpful to employers who are adding positions to their payrolls. New hires filling existing positions also qualify but only if the workers they are replacing left voluntarily or for cause.
Please watch the IRS site for revised forms and other details under HIRE
Feel free to contact me with questions.
Cindy Brey
Business Service Specialist
MN Dept. of Employment & Economic Development
Brainerd WorkForce Center
204 Laurel Street, Suite 21
Brainerd, MN 56401
Phone: 218-825-6783
Cell: 218-296-2210
FAX: 218-828-6194
E-mail: Cindy.Brey@state.mn.us
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