It hit the news today as Representative Lynn Jenkins, R-KS announced her Hire A Hero Act of 2010 during a press conference at the Museum of the Kansas National Guard. H.R.4859 was referred to the House Committee on Ways and Means earlier this year on March 15th. (more…)
Tag: Hr 647
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The following is directly from the IRS Newswire dated April 7, which I received about 39 hours ago. I reported on the new Form W-11 a few days ago after it was released in Draft form. The Draft Form W-11 has been officially upgraded to real.
Allow me to suggest that you go back and review my previous post. The Payroll Tax Holiday seems simple on its face; however, there are some operational questions in connection with the Work Opportunity Tax Credit (WOTC) that must be wrestled with (click here).
Please feel welcome to contact me with your questions. Call (800) 655-5281, ext 101 or e-mail me at vah@WOTCPLanet.com.
Directly from the wire….
WASHINGTON — The Internal Revenue Service today released a new form that will help employers claim the special payroll tax exemption that applies to many newly-hired workers during 2010, created by the Hiring Incentives to Restore Employment (HIRE) Act signed by President Obama on March 18.
New Form W-11, Hiring Incentives to Restore Employment (HIRE) Act Employee Affidavit, is now posted on IRS.gov, along with answers to frequently-asked questions about the payroll tax exemption and the related new hire retention credit. The new law requires that employers get a statement from each eligible new hire, certifying under penalties of perjury, that he or she was unemployed during the 60 days before beginning work or, alternatively, worked fewer than a total of 40 hours for anyone during the 60-day period. Employers can use Form W-11 to meet this requirement.
Most eligible employers then use Form 941, Employer’s Quarterly Federal Tax Return, to claim the payroll tax exemption for eligible new hires. This form, revised for use beginning with the second calendar quarter of 2010, is currently posted as a draft form on IRS.gov and will be released next month as a final along with the form’s instructions.
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.
The HIRE Act created two new tax benefits designed to encourage employers to hire and retain new workers. As a result, 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 the employer’s share of social security tax on wages paid to these workers after March 18. This reduction 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. In addition, for each unemployed worker retained for at least a year, businesses may claim a new hire retention credit of up to $1,000 per worker when they file their 2011 income tax returns.
These two tax benefits 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. Family members and other relatives do not qualify for either of these tax incentives.
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. IRS.gov has more details.
Related Item: IR-2010-33, Two New Tax Benefits Aid Employers Who Hire and Retain Unemployed Workers (more…)PUBLISHED IN
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This evening, we added a new link in the “Important Government Links” section on the WOTCPlanet.com main page. If you’re viewing the site, the links are listed down the right side of the page, as are other helpful offerings. The latest link is to the U.S. Department of Labor Employment and Training Administration’s Advisory System (aka “DOL ETA Advisories”). The Department of Labor’s website explains it this way:
The Employment and Training Administration (ETA) Advisory system is used to disseminate ETA’s interpretations of Federal laws, procedural, administrative, management, program direction and other information to the states, direct grant recipients and other interested parties.
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For those of us awaiting guidance from the IRS about the new Payroll Tax Forgiveness Program of 2010, there is some good news. A draft IRS Form W-11 has been posted on the IRS Website, in addition to a set of Frequently Asked Questions or FAQs. (more…)
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Dearest Subscribers to WOTC Planet.com:
Please take a moment to add vah@WOTCPlanet.com to your e-mail contacts list. Sometime in the near future, we will be updating the WOTC Planet news blog so that news updates come to you from the WOTCPlanet e-mail server. Currently, e-mails updates are being sent out from my own account at RestaWOTC (e.g., vah@restaWOTC.com). (more…)PUBLISHED IN
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I have wanted to write about this for a couple of weeks now, but as you know if you follow the news, there has been a lot going on.
On March 5, 2010 the U.S. Department of Labor’s Employment and Training Administration issued Training and Employment Guidance Letter NO. 3-09 Change 2. (I’m not complaining, but even the names of these documents are complicated.) (more…)PUBLISHED IN
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Directly from the wire….
WASHINGTON — Two new tax benefits are now available to employers hiring workers 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 today. (more…)Economic Recovery, Hire Act, Hiring Incentives To Restore Employment Act, Hr 2847, Jobs, Jobs Creation, Payroll Tax Exemption, Payroll Tax Forgiveness, Payroll Tax Holiday, Tax Credits, Unemployed WorkersRead more: From IRS Newswire – Two New Tax Benefits Aid Employers Who Hire and Retain Unemployed WorkersPUBLISHED IN
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Today, as anticipated, the U.S. Senate approved the amended HIRE Act, which had been passed back from the House on March 4th (see previous post). As you may recall, this bill includes a Payroll Tax Forgiveness program. For qualifying workers, this will relieve employers of the 6.2 percent FICA tax expense during 2010. If such a worker remains employed for at least 52 weeks, the employer receives a $1,000 income tax credit for 2011. (more…)
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The California State Senates Revenue and Taxation Committee has scheduled an informational hearing for today on the subject of California’s Enterprise Zone program. The hearing is scheduled to begin 1:30 PM. Click here for the Agenda
Let’s keep our fingers crossed that those who speak best also know best while keeping the interests of California employers (and their employees) in focus. (more…)PUBLISHED IN
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The Jobs for Main Street Act, which we’ve been following from House to Senate to House, is now headed back to the Senate again. From the House perspective, the bill is known as the Hiring Incentives to Restore Employment (or “HIRE”) Act. (more…)PUBLISHED IN
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