Employment Tax Holiday

Recent legislation known as the HIRE Act may offer you  financial incentives for hiring new workers.  As your trusted adviser, we want to help you understand the rules around the new HIRE Act and ensure that eligible clients receive the benefits of this new tax credit.

We’re excited to inform you that we have made updates to your payroll service to support one part of the HIRE Act, the Social Security tax credit (also known as the employment tax holiday).


Important!  The rules for claiming the HIRE credit are very specific and cannot be used in conjunction with other tax incentives such as the WOTC (Work Opportunity Tax Credit).  We want to be sure to review your  business needs and the eligibility requirements carefully before proceeding.  Read more about the HIRE Act on the IRS website: http://www.irs.gov/businesses/small/article/0,,id=220746,00.html.

If you hire a new employee after 2/3/2010 and before 1/1/2011, you can exclude him/her from the employer portion of the Social Security tax calculation.

• This law requires the employer to get a statement from each eligible new hire certifying that he/she was unemployed during the previous 60 days before beginning work OR worked fewer than 40 hours total for someone else during that period. 
• The IRS has developed a form for employees to use for this statement: http://www.irs.gov/pub/irs-pdf/fw11.pdf