HIRE Act/Jobs Bill Update

The Hiring Incentives to Restore Employment (HIRE) Act is an $18 billion federal program that will provide employers with incentives to hire and retain employees.

Critical Points of this legislation are as follows:

The Act will exempt an employer from paying the employer portion of Social Security taxes (6.2%) for the remainder of the year on newly-hired employees who were previously unemployed. The credit is received by reducing deposits on the 941, 943, or 944 starting in 2nd Quarter 2010.

A qualified individual must meet the following requirements:

1. Begins employment with a qualified employer after February 3, 2010, but before January 1, 2011.
2. Has not been employed for more than 40 hours total during the previous 60 days. The individual must sign an affidavit attesting to the employer that this is true. An affidavit model form will be posted as an updated QTS News Release once available from the IRS. This form will be retained by the employer and not submitted to the IRS.
3. Is not hired to replace another employee unless the previous employee was separated from employment voluntarily or for cause.
4. Is not a family member of the owner of the business.

An additional one-time business tax credit for each qualified individual who stays employed with the qualified employer for 52 weeks is also available. The credit is the lesser of $1,000 or 6.2% of the wages paid to the retained worker during the 52-week retention period. Wages paid during the second 26-week period must equal at least 80 percent of wages paid during the first 26-week period. This credit can be taken on the employer's 2011 Income Tax Return. The W11 form is included in the business issues.


Rick Terrazas
QTS Payroll
702 428-5284 cell
8170 W. Sahara Ave.
Las Vegas, NV 89117
www.qtspayroll.com