New Hire Tax Credit UPDATE - Employee Affidavit Form available and more
Friday, April 23, 2010
The Hiring Incentives to Restore Employment (HIRE) Act Employee Affidavit Form is now available!
Also, I wanted to update you on the New Hire Tax Credit. Please feel free to share this information with colleagues and business groups.
See: http://www.irs.gov/businesses/small/article/0,,id=220745,00.html for FAQ’s “Under the Hiring Incentives to Restore Employment (HIRE) Act, enacted March 18, 2010, two new tax benefits are available to employers who hire certain previously unemployed workers (“qualified employees”). The first, referred to as the payroll tax exemption, provides employers with an exemption from the employer’s 6.2 percent share of social security tax on wages paid to qualifying employees, effective or wages paid from March 19, 2010 through December 31, 2010.
In addition, for each qualified employee retained for at least 52 consecutive weeks, businesses will also be eligible for a general business tax credit, referred to as the new hire retention credit, of 6.2 percent of wages paid to the qualified employee over the 52 week period, up to a maximum credit of $1,000.
How does the employer claim the payroll tax exemption for wages paid to qualified employees?
A: The payroll tax exemption is claimed on Form 941, Employer's QUARTERLY Federal Tax Return, beginning with the second quarter of 2010.
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
Also, I wanted to update you on the New Hire Tax Credit. Please feel free to share this information with colleagues and business groups.
See: http://www.irs.gov/businesses/small/article/0,,id=220745,00.html for FAQ’s “Under the Hiring Incentives to Restore Employment (HIRE) Act, enacted March 18, 2010, two new tax benefits are available to employers who hire certain previously unemployed workers (“qualified employees”). The first, referred to as the payroll tax exemption, provides employers with an exemption from the employer’s 6.2 percent share of social security tax on wages paid to qualifying employees, effective or wages paid from March 19, 2010 through December 31, 2010.
In addition, for each qualified employee retained for at least 52 consecutive weeks, businesses will also be eligible for a general business tax credit, referred to as the new hire retention credit, of 6.2 percent of wages paid to the qualified employee over the 52 week period, up to a maximum credit of $1,000.
How does the employer claim the payroll tax exemption for wages paid to qualified employees?
A: The payroll tax exemption is claimed on Form 941, Employer's QUARTERLY Federal Tax Return, beginning with the second quarter of 2010.
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
at
3:35 PM
Post a Comment