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Learn More About WOTC
How we can help save your company
money during these difficult economic times...
>> Read More
WOTC Brochure
Download our printable PDF
Brochure.
>> Read More
WOTC Qualifying
Groups
Learn what groups of people
qualify under the work opportunity tax credit program.
>> Read More
WOTC In The News
The latest news and information
about the Work Opportunity Tax Credit program....
>> Read More
WOTC State by State
Find out about the WOTC program
from Alaska to Wyoming and everywhere in between....
>> Read More
WOTC Calculator
With an estimated 15% of new
employees qualifying for the WOTC program, and an average tax credit
of $2,400 the savings can be enormous! Calculate your
potential savings here...
>> Read More
Contact CMS
Have a question for us, or want
to ask us how the WOTC can help your business? To speak with a
CMS WOTC Representative, or find out about the Work opportunity Tax
Credit Savings in your state, please call us at 1-800-517-9099
and ask for Brian, or
send an email.
>> Read More
Webinars
Join
CMS for a webinar to find out more about the Work Opportunity Tax
Credit Savings that are available to you!
>> Click here to view upcoming schedule. |
HIRE Act Updates
April 6, 2010 — The IRS released
Form W-11: HIRE Act Employee Affidavit (PDF File). Use it to
confirm that an employee is qualified under the HIRE Act.
March 18, 2010
— The President signed the HIRE Act into law. The IRS is
now outlining how to handle the Act's provisions. We will continue
to monitor the situation, and will update you as final details
emerge.
Latest
Legislation
The cornerstone of the HIRE Act is a federal program that will
provide employers with incentives to hire and retain employees. HIRE
will exempt an employer from paying the employer portion of Social
Security taxes for the remainder of the year on new hires who are
currently unemployed. If those workers stay on the payroll for at
least a year, the employer would also get up to a $1,000 business
tax credit per employee.
Social
Security Tax Forgiveness
The 6.2% employer portion of the Social Security tax would be exempt
for any qualified individual hired after February 3, 2010 and before
January 1, 2011, for wages paid between March 19, 2010 and December
31, 2010 up to the $106,800 Social Security wage base.
A qualified
individual meets the following requirements:
- Begins employment with a
qualified employer after February 3, 2010, but before January 1,
2011.
- Has not been employed for more
than 40 hours during the previous 60 days. The individual must
sign an affidavit attesting to the employer that he was not
employed in the previous 60 days, or was employed for no more
than 40 hours total.
- Is not hired to replace another
employee unless the previous employee was separated from
employment voluntarily or for cause.
- Is not a family member of the
business owner.
An employer can save up to $6,622 in
employer Social Security tax for each qualified hire. There is no
limit to the total amount of tax benefits or hires during this
period, so employers will receive greater tax benefits by hiring
individuals earlier in the year.
Note:
The Social Security tax exemption can not be taken in
conjunction with the Work Opportunity Tax Credit (WOTC). In
other words, if the employer chooses to take the WOTC on a qualified
worker, they cannot also take the Social Security tax exemption.
Business
Credit for Retention
A business tax credit can also be claimed by the employer for each
qualified individual hired after February 3, 2010 who stays with the
employer for 52 consecutive weeks. This business credit will be the
lesser of $1,000 or 6.2 percent of the wages paid by the employer to
the retained worker during the 52 consecutive week retention period.
For the employer to claim this
additional credit, wages paid during the previous 26 weeks must
equal at least 80% of wages during the first 26 weeks of employment.
HIRE Act: Questions and Answers for Employers
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