The “HIRE Act” has recently been signed into law. The “HIRE Act” allows you as an employer to claim a payroll tax credit for each “qualified employee”. Please have any “qualified employee” complete and sign the Form W-11. The credit can be claimed starting with the 2nd Qtr Payroll Reports due at the end of July.
A “qualified employee” is an employee who:
· Begins employment with you after February 3, 2010, and before January 1, 2011;
· Certifies by signed affidavit, Form W-11, that he or she has not been employed for more than 40 hours during the 60-day period ending on the date the employee begins employment with you;
· Is not employed by you to replace another employee unless the other employee separated from employment voluntarily or for cause (including downsizing); and
· Is not related to you. An employee is related to you if he or she is your child or a descendent of your child, your sibling or stepsibling, your parent or an ancestor of your parent, your stepparent your niece or nephew, your aunt or uncle, or your in-law. An employee also is related to your if he or she is related to anyone who owns more than 50% of your outstanding stock or capital and profits interest or is your dependent or a dependent of anyone who owns more than 50% of your outstanding stock or capital and profits interest.
Farrow & Associates, LLC is a small business accounting firm that has been providing accounting solutions to Wisconsin businesses for over 30 years. Find us on the web at www.farrowbiz.com or www.wicpas.com.
