Posts Tagged ‘HIRE Act’

HIRE Act Retention Credit

Tuesday, September 27th, 2011

HIRE Act Retention CreditTax Credits

After all of the dust settled on the March 18, 2010 Hiring Incentives to Restore Employment (HIRE) Act, many businesses are forgetting that the Act provided a second opportunity for tax savings based on retention of HIRE Act eligible employees.

The HIRE retention credit is a general business credit to encourage retention of new hires and will be claimed on the employer’s income tax return. The amount of the credit is the lesser of $1000 or 6.2 percent of wages (as defined for income tax withholding purposes) paid by the employer to the retained qualified employee during the 52 consecutive week period. The qualified employee’s wages for such employment during the last 26 weeks must equal at least 80% of wages for the first 26 weeks.  This credit cannot be carried back to years beginning before March 18, 2010, but may be carried forward. The credit will be claimed on the employer’s income tax return.
*PCS does not apply this credit as it is a credit on your business tax return.

HIRE Act: Questions and Answers for Employers

From IRS Website www.IRS.gov

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 for 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.

Helpful Links

Business Credit for Retention of Certain Newly Hired Individuals in 2010

HIRE Act Flyer from IRS

Are You Missing Out? – PCS Blog Entry

Article Submitted By:

Bob Willbanks
VP of Sales & Marketing
Payroll Control Systems
763.746.1934 Direct
bwillbanks@pcspayroll.com

Legal Disclaimer: This article is intended for informational purposes only and by no means should replace or substitute other legal documents (governmental or non-governmental) reflecting similar content or advice. If you have any questions concerning your situation or the information provided, please consult with an attorney, CPA or HR Professional.

New 2011 IRS Tax Calendar

Tuesday, January 25th, 2011

IRS Tax CalendarThe New 2011 IRS Tax Calendar for Small Business and Self Employed is available in both English and Spanish (Publication 1518SP), and is filled with useful information to address your business concerns. Each month highlights a different tax topic. Tax reminders and instructions are shown by date, and you can add your own notes such as state tax dates or business appointments. In addition to the monthly topics, you’ll find online resources along with a list of Forms and Publications, and a tear-out sheet of quick reference items.

Find the online version at:

www.irs.gov (search: tax calendar) or just click here.

Here are a few of the highlights contained in the new tax calendar:

Hiring Incentives to Restore Employment (HIRE) Act

Two new tax benefits are now available to employers hiring individuals who were previously unemployed or only working part time. These provisions are part of the Hiring Incentives to Restore Employment (HIRE) Act enacted into law on March 18, 2010.

Payroll Tax Exemption for Hiring the Unemployed:
The payroll tax exemption provides employers with an exemption from their 6.2 percent share of social security tax on wages paid to qualifying employees. This provision is effective for wages paid from March 19, 2010 through December 31, 2010.

Business Credit for Retention of Certain Newly Hired Individuals in 2010:
This is a general business credit to encourage retention of new hires. The employer may claim the credit for each qualified employee who remains an employee for 52 consecutive weeks, provided that the employee’s pay does not decrease significantly in the second half of the year. The amount of the credit is the lesser of $1,000 or 6.2 percent of wages (as defined for income tax withholding purposes) paid by the employer to the retained qualified employee during the 52 consecutive week period. The credit cannot be carried back but may be carried forward.

Go to www.irs.gov, search: HIRE Act.

Health Care Tax Credit

Health coverage legislation enacted this year includes a Small Business Health Care Tax Credit to help small businesses and small tax-exempt organizations provide health insurance coverage to their employees. Small businesses and tax-exempt organizations providing health insurance coverage will qualify for a special tax credit.

Included in the health care reform legislation, the Patient Protection and Affordable Care Act encourages small business employers to offer health insurance coverage for the first time or maintain coverage they already have. In general, the credit is available to small business employers paying at least half the cost of single coverage for their employees.

Go to www.irs.gov, search: Health Care Tax Credit.

The American Recovery and Reinvestment Act (ARRA) of 2009 contains several tax provisions that affect businesses including the following.

COBRA Changes

The Recovery Act outlines changes to the health benefit provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985. The provision affects former employees and other potential COBRA payers such as insurance carriers.

ARRA provides a 65 percent subsidy for up to 15 months of the cost of COBRA coverage for an employee who was involuntarily terminated from his/her job from September 1, 2008, through May 31, 2010. The former employee must have been enrolled in an employer provided health plan at the time of involuntary termination to qualify for the credit.

The eligible former employee must pay 35 percent of the total premium and the former employer claims the remaining 65 percent of the total premium as a credit on Line 12a of Form 941, Employer’s Quarterly Federal Tax Return. The credit was first available with the first quarter Form 941 due April 30, 2009. The credit is subject to verification requirements, so the former employer must keep adequate documentation to support the credit claimed.

The COBRA subsidy is available to people who become eligible for COBRA coverage as a result of a reduction in hours occurring between September 1, 2008, and May 31, 2010, followed by an involuntary termination between March 2, 2010 and May 31, 2010. Individuals who did not take COBRA coverage after the reduction in hours or who signed up but later dropped it, get another chance to sign up for COBRA coverage.

Go to www.irs.gov, search: COBRA.

Earned Income Tax Credit

Help your employees increase their take-home pay at no cost to you!

Please help the IRS alert your employees about a valuable tax credit that could put up to $5,600 in their pockets.  If you have employees who earned less than $48,000 in 2010, they may qualify for the Earned Income Tax Credit, or EITC. However, IRS estimates that up to one in four qualifying individuals will fail to claim and receive the credit. With your assistance, we can reduce that number.

However, before taxpayers can receive EITC, they must first file federal income tax returns, even if they are not otherwise required to file. Some states have a similar tax credit, increasing the dollars due these employees.

IRS has several resources to help you inform your employees about EITC. Go to the EITC employer page for links to technical information, communication toolkits and marketing materials. Corporate Voices, a leading nonprofit nonpartisan organization that represents the private sector on working family policy issues, also publishes a downloadable employer EITC guide which you can access by clicking here.

Some relatively inexpensive ways you can alert your employees about EITC include:

  • Posters in employee break rooms
  • Messages on your company intranet site
  • Articles in your company newsletter
  • A link from your intranet site to EITC information on www.irs.gov
  • E-mail messages to your workforce
  • Stuffers with your Form W-2 mail-out
  • Leveraging other internal communication channels
  • Including EITC information in new employee orientations

Article Provided By:

The PCS Team

Legal Disclaimer: This article is intended for informational purposes only and by no means should replace or substitute other legal documents (governmental or non-governmental) reflecting similar content or advice. If you have any questions concerning your situation or the information provided, please consult with an attorney, CPA or HR Professional.

Are You Missing Out?

Sunday, October 31st, 2010

HIRE ActThroughout the week, we’re in contact with many prospects and customers of PCS and we have the opportunity to ask them if they’ve been taking advantage of the HIRE Act.  In almost every case, we’re met with a blank stare and the response, HIRE Act?  What’s that?

The HIRE Act is arguably the highest POSITIVE impact legislation for business launched in 2010.  Eligible new hires are EXEMPT from Employer Social Security Tax for the 2010 tax year (for wages paid after March 18th of 2010) – a savings of 6.2% of eligible employee taxable wages.

However, most businesses aren’t aware the “holiday” on this tax is available.  Indeed, even though PCS has sent out multiple notifications, only 25% of our customers have taken the steps necessary to take advantage of the savings which can be as much as $7,621.60 per eligible employee.

THE DETAILS

On March 18, 2010 President Obama signed into law the Hiring Incentives to Restore Employment (HIRE) Act .  The HIRE Act provides tax credits for employers willing to expand their workforce by hiring individuals who are unemployed or only working part time. This law provides two opportunities for tax savings:

  • Social Security Tax Holiday – Employers who hire unemployed workers this year (after February 3, 2010 and through December 31, 2010) 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. This reduced tax withholding will have no effect on the employee’s future Social Security benefits, and employers would still need to withhold the employee’s 6.2-percent share of Social Security taxes, as well as income taxes. The employer and employees’ shares of Medicare taxes would also still apply to these wages.
  • General Business Tax Credit* – In addition, for each worker retained for at least a year, businesses may claim a general business tax credit, up to $1,000 per worker, when they file their 2011 corporate income tax returns.  The employee must be hired after February 3, 2010 and be employed for at least 52 consecutive weeks. Wages during the last 26 weeks must be at least 80 percent of the wages paid for the first 26 weeks.
    *PCS does not apply this credit as it is a credit on your business tax return.

The credit is available for eligible new hires made between February 3, 2010 and December 31, 2010. All credits must be applied to 2010 check dates. The maximum credit for each employee is $6,621.60 (Social Security wage max $106,800 x 6.2%).

An employee is eligible if he/she:

  • Begins employment between February 3, 2010 and December 31, 2010. Additionally, only the wages earned with a check date of March 19, 2010 to December 31, 2010 are eligible for the credit.
  • Has not been employed for more than 40 hours during the previous 60 days. The individual must sign a W-11 Form Affidavit of Employment, under penalty of perjury, attesting to the employer this fact. To get the W-11 form, click here.
  • Is not hired to replace another employee unless the previous employee was separated from employment voluntarily or for cause. Additional restrictions may apply for seasonal employment.
  • Is not related to the employer in one of the following ways: son, daughter, or descendant of either; stepson or stepdaughter; brother, sister, stepbrother, stepsister; father, mother, or ancestor of either; stepfather or stepmother; niece or nephew; aunt or uncle; or the following in-laws: son, daughter, father, mother, brother, or sister.

Businesses, agricultural employers, tax-exempt organizations, tribal governments and public colleges and universities all qualify to claim the payroll tax exemption for eligible newly-hired employees. Household employers and federal, state and local government employers, other than public colleges and universities, are not eligible.

WHAT YOU NEED TO DO

1.      Ask all new hires if they have worked for anyone more than 40 hours during the 60 day period ending on the day they began employment with you.  If they have not worked during this time frame, have them sign the affidavit Form W-11 and keep it on file.

2.      Look back at all new hires since February 3rd of 2010 that have received payroll checks dated after March 18th, 2010.  Find out if they would qualify based on the above criteria and if so, have them complete the Form W-11.  If you find that you have eligible employees, but have not been taking advantage of the HIRE Act, you will need to amend the affected 941 returns filed to date.

HOW TO CLAIM THE TAX EXEMPTION

If you are a PCS Client: Contact your Client Account Manager, they will guide you through the process.

If you are not a PCS Client: Form 941, Employer’s QUARTERLY Federal Tax Return, revised for use beginning with the second calendar quarter of 2010, will be filed by most employers claiming the payroll tax exemption for wages paid to qualified employees. The HIRE Act does not allow employers to claim the exemption for wages paid in the first quarter but provides for a credit in the second quarter. The instructions for the new Form 941 explain how this credit for wages paid from March 19 through March 31 can be claimed on the second quarter return.

The HIRE Act requires that employers get a signed statement from each eligible new hire, certifying under penalties of perjury, that he or she was not employed for more than 40 hours during the 60 days before beginning employment with that employer. Employers can use new Form W-11, Hiring Incentives to Restore Employment (HIRE) Act Employee Affidavit, released last month, to meet this requirement. Though employers need this certification to claim both the payroll tax exemption and the new hire retention credit, they do not file these statements with the IRS. Instead, they must retain them along with other payroll and income tax records.

These two tax benefits are especially helpful to employers who are adding positions to their payrolls. New hires filling existing positions also qualify as long as they are replacing workers who left voluntarily or who were terminated for cause and otherwise are qualified employees. Family members and other relatives do not qualify for either of these tax benefits.

Legal Disclaimer: This article is intended for informational purposes only and by no means should replace or substitute other legal documents (governmental or non-governmental) reflecting similar content or advice. If you have any questions concerning your situation or the information provided, please consult with an attorney, CPA or HR Professional.

The Tax Man Cometh

Monday, August 30th, 2010

Tax CreditsSubmitted By Shannon Scott

Most of you have heard the term “tax credit”, but did you know how it can decrease your tax burden and put more cash back into your business? Each year large and small companies forfeit millions of dollars because they do not take advantage of the tax credits available to qualifying employers. Many of these credits go unclaimed due to the complexity and time consuming factors that impact the process. There are many types of tax credits available to your company on the Federal, State and local level. For the staffing industry, the federal hiring credits such as the Work Opportunity Tax Credit (WOTC), HIRE Act credits and FICA Tip Tax Credit can result in huge dividends. These credits are available by simply doing what you do every day; hiring and placing employees.

These tax credits can provide up to $9,000 per employee in Federal Income Tax Credits based on the category for which the employee qualifies. These credits can be taken in the year earned, carried back one year or carried forward 20 years.  They can be demographic or geographic in nature.

Most companies believe they are taking advantage of this program through their regular tax deductions, however, that is simply not the case.  If your new hires are not completing and signing an IRS Form 8850 upon hire, you are not processing these tax credits.

This program, although very beneficial, can be almost impossible to administer in house. Processing and qualifying these credits takes a very good understanding of how tax incentives are applicable to a particular industry, location or employee base. In some cases, extensive background and address history research must take place in order to verify these credits.  Tax credit processing companies throughout the United States assist you in identifying these credits and calculating the amount for which an employee qualifies. Most of these companies work on a contingency fee basis, so there is no financial risk to your company and the fees are tax deductible.

Taking a proactive approach in identifying these credits can significantly increase your tax credit yield.  The application process will help you screen your new hires and identify their tax credit potential. After all, this program was put in place to encourage you to hire these employees.

Recent tax law changes have increased the use of these credits to businesses who could previously not take advantage of the incentives along with extending the program itself. The WOTC credit was extended for 3.5 years with liberalized rules for hiring disabled veterans and workers in “outward migration counties.” Under the pre-2007 Small Business Act law, most general business credits, such as the work opportunity tax, could not offset a taxpayer’s Alternative Minimum Tax (AMT) liability. With the enactment of the 2007 Small Business Act, this changed for credits earned after January 1, 2007.  The WOTC credits earned after January 1, 2007, will now offset AMT. A taxpayer is subject to AMT whenever their tentative minimum tax exceeds their regular tax.

There are many good resources available for learning more about the types of credits and how these credits can help reduce your tax burden. Information can be found on most search engines along with the IRS Website (www.irs.gov).  Tax time is fast approaching and it is not too late to help reduce your 2007 tax liability.

-Shannon Scott is the CEO & President of TaxBreak

Please contact George Shamblin at gshamblin@taxbreakllc.com for questions about the tax credit program available through PCS via TaxBreak.

George Shamblin
Corporate Account Executive
TaxBreak
2010 Club Drive, Ste. 100
Gadsden, AL 35901
205.305.7968 Cell
256.549.7554 Fax
www.nationaltaxcredit.com

Legal Disclaimer: This article is intended for informational purposes only and by no means should replace or substitute other legal documents (governmental or non-governmental) reflecting similar content or advice. If you have any questions concerning your situation or the information provided, please consult with an attorney or an HR Professional.

U.S. Treasury Reports on HIRE Act

Tuesday, July 27th, 2010

HIRE UpdateThe U.S. Department of the Treasury today released a new report showing that, from February 2010 to May 2010, businesses have hired an estimated 4.5 million new workers who had been unemployed for eight weeks or longer, making those businesses eligible to receive up to a projected $8.5 billion in HIRE Act tax exemptions and credits for hiring the unemployed.

Alan B. Krueger, Assistant Secretary for Economic Policy and Chief Economist at the Treasury Department, announced the release of the report in Sanford, North Carolina with Congressman Bob Etheridge (NC-2) and Andy Warlick, President and CEO of Parkdale Mills, a yarn manufacturer that recently reopened a plant in Sanford and has already hired more than 30 workers who are eligible for HIRE Act tax exemptions, a number that will likely grow as they continue to add more workers.

“Helping unemployed Americans get back to work – particularly the long-term unemployed - is essential to ensuring a strong economic recovery,” said Assistant Secretary Krueger. ”Targeted, temporary incentives like the HIRE Act are helping to fuel a private-sector-led recovery.  After a period of extraordinary difficulty, the economy is continuing to grow and private sector companies have added jobs for six straight months.”

The Hiring Incentives to Restore Employment (HIRE) Act of 2010 provides employers an incentive to hire workers who have been unemployed for 60 days or longer by exempting wages paid to these workers from the employer’s 6.2 percent share of Social Security payroll taxes for the remainder of the year.  In addition to exempting employers from these payroll taxes, the HIRE Act allows employers to claim a tax credit of up to $1,000 for each newly hired qualifying worker who is retained for one year.  An employer is eligible to receive almost $3,500 in tax savings from hiring an unemployed worker who is paid $40,000 in salary this year. 

“This new tax credit provided a powerful incentive to grow our business and was a major factor in our decision to re-open the plant in Sanford,” said Andy Warlick, President and CEO of Parkdale Mills.  “It’s an example of tax policy that’s done the right way – that’s not about off-shoring but about re-shoring, and it’s helping us create jobs here.” 

Using monthly data from the Current Population Survey, Treasury estimated that, from February 2010 to May 2010, 4.5 million workers who had been unemployed for eight weeks or longer were hired by employers who are eligible for the HIRE Act payroll tax exemption.  If these 4.5 million newly hired employees remain employed for the rest of the year, their employers would be eligible for an estimated $5.1 billion in payroll tax savings as a result of the Act.  Furthermore, if three-quarters of the workers remain employed for 52 weeks, then their employers would receive another $3.4 billion in tax credits for these hires.

Treasury’s report includes employment data through May 2010. The HIRE Act tax exemption is still available for the remainder of 2010 to employers who hire unemployed workers.  Treasury’s Office of Economic Policy will estimate the number of newly hired workers whose employers qualify for the HIRE Act tax exemption and update this report monthly for the rest of the year.

To follow the PCS updates on HIRE Act, click here.

Health Care Credit Update

Wednesday, May 26th, 2010

Health CareThe new health care reform laws have differing impacts and timelines for employers depending upon the size of the business and the types of benefit plans they have put into place to provide health related insurances.  Since there is interaction between the HIRE Act and health care reform that presents both opportunities and pitfalls, we highly recommend that businesses consult with their CPA, insurance broker and other trusted advisers to determine the proper course of action specific to their business.

SHORT TERM OVERVIEW OF THE IMPACT ON BUSINESSES

  • 2010-2013: Small businesses (fewer than ) providing health care coverage for employees may be eligible to claim a credit equal to 35% of the contributions they make on behalf of their employees for insurance premiums.  There are rules and limitations which are outlined in the recap of IRS Notice 2010-44 below.
  • 2011: Employers must report the value of health insurance plans on W-2 forms and all employer-sponsored plans will be required to have the following amendments: (1) Eliminate lifetime and annual limits on benefits, (2) Provide first-dollar coverage for preventative care, (3) Extend eligibility for dependent coverage to employees’ unmarried children through age 26.
  • 2013: A $2,500 limitation on contributions to health FSAs and FSAs, HSAs or MSAs can no longer be used for over the counter drugs.  Penalties for using these accounts for disallowed purchases will increase from 10 to 20% on HSAs and from 15 to 20% for MSAs.

There are many other phase-in reforms that occur in the following years.  Due to the volatility of this reform, we recommend that you follow the progress at the IRS website and seek counsel from your trusted advisers in order to plan effectively.

IRS OFFERS DETAILS ON HEALTH CARE TAX CREDIT

On May 17th, 2010 the IRS issued new guidance to make it easier for small businesses to determine whether they are eligible for the new health care credit.  Notice 2010-44 provides the following information:

  1. Purpose and Background: Brief overview of the reasons for the credit.
  2. Employers Eligible for the Credit: Overview of the requirements and details on the five steps employers must take to determine eligibility.
  3. Calculating the Credit: Details on the three steps that determine the credit amount.
  4. Claiming the Credit and Effect on Estimated Tax, AMT and Deductions
  5. Transition Relief for Taxable Years Beginning in 2010
  6. Effective Date

The notice is twenty pages long and offers quite a few examples to assist the employer with making the proper determinations.  Again, we recommend that business owners consult with their CPA and other trusted advisers to ensure they are taking full advantage of the general business credit being offered.

NON PROFIT EMPLOYERS

Organizations described in section 501c that are exempt from tax under section 501a may be eligible for the credit.  Since these employers are exempt from paying corporate / business tax, there is some confusion as to how they will be able to claim and receive the credit.  In Notice 2010-44 section 45R states that, “For a tax-exempt eligible small employer, the IRS will provide further information on how to claim the credit.”  General consensus among the many advisers PCS has polled is that the credit will either be taken on the 941 payroll tax filing or may be issued in the form of a grant.  At this time, all thoughts are pure conjecture and we are awaiting final direction from the IRS.

Since eligible small employers that are not tax-exempt will be taking the credit on the business tax returns, there are not any ramifications on payroll tax reporting at this time.  However, it’s important to note the need for reporting the value of the employees health insurance on the W-2’s beginning in tax year 2011.

HELPFUL LINKS

NOTICE 2010-44

Answers to Frequently Asked Questions

IRS Announcement Offering Details on Health Care Credit

First PCS Article on Health Care Reform

Legal Disclaimer: This article is intended for informational purposes only and by no means should replace or substitute other legal documents (governmental or non-governmental) reflecting similar content or advice. If you have any questions concerning your situation or the information provided, please consult with an attorney or an HR Professional.

HIRE Act and COBRA Update

Wednesday, May 26th, 2010

Health CareThe IRS has released a number of updates over the past month including additional clarification on the HIRE Act and COBRA extension. It contains details on how to receive the credit for wages/tips paid to qualified employees after March 18th and before April 1st, 941 filing instructions and additional information on the COBRA premium assistance and extension.

Qualified employer’s social security tax credit.  Qualified employers are allowed a credit in the second quarter of 2010 for their share (6.2%) of social security tax on wages/tips paid to their qualified employees after March 18, 2010 and before April 1, 2010.  The credit will be taken on lines 12c through 12e on the 941 where the employer will enter the number of qualified employees for the period, the exempt wages/tips and compute the social security tax exemption for the period of March 19-31, 2010.  This amount will be treated as a deposit of taxes on April 1, 2010 and must not be used to adjust line 17 (Tax Liability for Quarter) or Schedule B (Report of Tax Liability for Semiweekly Schedule Depositors).

Qualified employer’s social security tax exemption.  Qualified employers are allowed an exemption for their share (6.2%) of social security tax on wages/tips paid to qualified employees after March 31, 2010 and before January 1, 2011.  The exemption is taken on lines 6a through 6d on the 941 where the employer will enter the number of qualified employees first paid exempt wages/tips in the quarter, the total number of qualified employees paid exempt wages/tips in the quarter, the exempt wages/tips paid during the quarter, and the social security tax exemption.  The tax exemption listed on line 6d will directly impact the total taxes before adjustments listed on line 6e of the 941 return.

Payroll Control Systems (PCS) has been following the updates from the IRS closely with regard to the HIRE Act.  We have the systems and procedures in place to assist our customers with receiving this credit.  If you are not a PCS customer and would like further assistance, please call 763.513.5951 or email us at info@pcspayroll.com.  If you are a current customer and have further questions, please contact your Client Account Manager directly.  To access our prior releases on the HIRE Act which include a wizard for determining new hire eligibility and the W-11 form the employee must sign, click here.

COBRA premium assistance credit extended.  The credit for COBRA premium assistance payments has been extended.  It now applies to premiums paid for employees involuntarily terminated between September 1, 2008, and May 31, 2010, and to premiums paid for up to 15 months.  Congress may take additional legislative action that extends the credit further.  Stay tuned for further updates from PCS or you can monitor the progress at the IRS website, enter keyword COBRA.

Legal Disclaimer: This article is intended for informational purposes only and by no means should replace or substitute other legal documents (governmental or non-governmental) reflecting similar content or advice. If you have any questions concerning your situation or the information provided, please consult with an attorney or an HR Professional.

Hire Act Update

Sunday, April 25th, 2010

 

Hire Act UpdateWe have received numerous updates from the IRS since the March Issue of PayNotes and continue to monitor the IRS website on a daily basis.  Included in the updates are:

  1. FAQ from IRS on HIRE
  2. New Form W-11 which is the Affidavit that employers must have the employees complete in order to comply with the regulations of the Act.
  3. The language of the Act itself.

We have been keeping our original article on HIRE updated with these new releases including the Wizard which can help you identify if any new hires qualify your company for the exemption.  To access the article, click here.

For our Clients, there are a number of steps that need to be taken in order to ensure the employer Social Security Tax exemption is computed and reported correctly.  PCS’s software is now updated to allow for the recording of HIRE Act events.  If you have a qualified new hire to setup, here is what you need to do:

  1. Be sure to have the employee fill out and sign the Affidavit (W-11 ). Retain these records and do not send them to PCS.
  2. Notify your Client Account Manager via email or phone that you have an employee to apply the credit code to. Your Client Account Manager will make the appropriate notations and will take care of the employee coding for you at this time.

Again, we will be keeping this page up to date as new information is available, be sure to check back on a regular basis or contact your Client Account Manager for any assistance!

Legal Disclaimer: This article is intended for informational purposes only and by no means should replace or substitute other legal documents (governmental or non-governmental) reflecting similar content or advice. If you have any questions concerning your situation or the information provided, please consult with an attorney or an HR Professional.