Chalfont Business Solutions

HIRE Act

I am discovering that some who have payrolls are still not familiar with the HIRE Act.  This has been one of the easiest of incentives for businesses.  This allows you to keep your portion of the Social Security Taxes you have been required to match. This only lasts until December 31, 2010.

To qualify you must have:

A “qualified employee” is an employee
who:
• begins employment with you after
February 3, 2010, and before January 1,
2011;
• certifies by signed affidavit, or similar
statement under penalties of perjury, that
he or she has not been employed for
more than 40 hours during the 60-day
period ending on the date the employee
begins employment with you;
• is not employed by you to replace
another employee unless the other
employee separated from employment
voluntarily or for cause (including
downsizing); and
• is not related to you. An employee is
related to you if he or she is your child or
a descendent of your child, your sibling
or stepsibling, your parent or an
ancestor of your parent, your stepparent,
your niece or nephew, your aunt or
uncle, or your in-law. An employee also
is related to you if he or she is related to
anyone who owns more than 50% of
your outstanding stock or capital and
profits interest or is your dependent or a
dependent of anyone who owns more
than 50% of your outstanding stock or
capital and profits interest.   (taken from the W11 instructions)

The W11 form is to be retained with your records.  Correct you don’t even have to send it in. You don’t have to wait for approval. You don’t have to fill out endless number of forms to get your incentive. Your portion of Social Security that you have needed to match is now yours to keep. This does not include Medicare – ONLY Social Security.

If you have qualifying employees that started before you were aware of the incentive you may make adjustments on the current quarter’s 941 form.

As always if you have any questions regarding this great incentive please email or call me, Jeanne Noel Chalfont, Chalfont Business Solutions.

See Federal Links for the W11 with the instructions.

Tags: Employee, employment, HIRE Act, Payroll, Social Security, W11

Under Construction

Please take a look around but watch out for nails and such – I’ve had the ol’ hammer n nails out trying to get finished up. Please visit often for new fix’ns and additions  – like some blogging.