The Federal HIRE Act

Farmington, CT March 22 — CMS, a leading provider of Employer Solutions, including iRecruit, CMS’s Employment Tax Credit (WOTC) processing services, Sage Software HR, payroll and benefits administration, announced it is ready to assist its clients with specific statutory and other compliance requirements associated with the Federal HIRE Act. The Hiring Incentives to Restore Employment (HIRE) legislation was recently passed by Congress and was signed into law by President Obama on March 18th, 2010.

“The intent of the HIRE Act by Congress and the Administration is to reinvigorate the workforce,” said Brian Kelly, President of CMS. “While these measures will certainly be welcomed by employers, staying compliant in this complex and quickly changing business environment can be a burden for companies of all sizes. CMS is committed to making it easy for clients to remain compliant while reducing expenses and increasing cash flow.”

CMS helps clients understand and take advantage of complex employment-related tax credit legislation such as the job creation provisions within the HIRE Act. The HIRE Act eliminates the current 6.2 percent employer Social Security tax for eligible new hires, generating immediate savings that will positively impact an employer’s bottom line. In order to obtain the credit, it also requires any new hire to certify his/her previous employment status by signed affidavit. Additionally, companies are afforded either a significant income tax credit of $1,000 per qualifying worker once the worker is employed for at least 52 consecutive weeks, or 6.2% of wages paid to the qualifying worker over the 52-week period, whichever is less.

For clients of all sizes already using Sage Abra’s payroll systems and whose new employees are eligible under the HIRE Act, Sage Software is implementing changes to their product offerings to help organizations comply with the HIRE Act and will reflect the legislative changes in an upcoming release.

Combine this new Hire Act legislation with CMS WOTC services and business stands to potentially save up to $9,021.00 per new hire who has been without full-time employment for at least 60 days.

CMS’s offering includes:

CMS WOTC service performs a complete solution for employers to take advantage of the Federal Employment Tax Credits available. CMS provides pre-screening for all new hires to identify eligible employees, and performs all correspondence to state and federal agencies for employers to maximize the tax credits savings, tax credits can be as much as $6,000 per new employee. For more information and to obtain an estimate of a company’s potential savings, please visit or call 1-800-517-9099.