Two new pieces of legislation, the “Jobs
Bill” (Hiring Incentives to Restore Employment Act or
HIRE Act – “Jobs
Bill”
The
key provisions of this bill include:
·
Eliminating
the 6.2% employer social security tax on eligible hires.
·
A
one-time business tax credit for retaining eligible employees for 52 consecutive
weeks.
The
following information is known from the
·
The
credit is for eligible employees hired after February 3, 2010, but only wages
paid between
March 19, 2010 and December 31, 2010 are eligible.
·
A
new Form 941 will be updated to account for the tax credits beginning with the
second quarter form. First quarter wages and credits will also be reported on
the second quarter form.
·
Employers
can reduce their federal deposit amounts throughout the quarter by the eligible
employer social security tax amount, or they can wait to claim the credit on
their Form 941 return.
·
There
will be a standard affidavit for employers to use for eligible employees.
Employers may create their own version as long as the wording is identical to
the
Healthcare
Reform
We
will continue to follow the provisions of the healthcare bill. Some elements of
the bill are slated to take effect within the next year, while others will take
some time to implement.
We
will provide information and assistance to you well in advance of the effective
dates of the various elements of final legislation.
We Are on Top
of the Situation
As
further legislative provisions continue to emerge, be assured that we will
remain apprised of these developments. Our firm works with industry leaders,
such as Paychex, to constantly monitor changes in
local, state, and federal laws that affect your business. We will keep you
informed, so you can concentrate on running your business.
For
details surrounding the most recent updates to the
This content has been provided by Paychex,
Inc. For more information, visit www.paychex.com
or call 1-800-322-7292.
The material contained above is current as of