- A payroll tax credit for an employer who hires previously unemployed workers and a general tax credit for the employer of up to $1,000 for each such employee retained for at least 52 weeks.
- The payroll tax credit portion does not require the employee be retained for 52 weeks and does not require the employee be full-time.
- Guidance from IRS is expected in the near future – the payroll tax credit will be claimed by employers on their second quarter returns after IRS issues its affidavit form and revised quarterly return documents.
- Only the unemployed qualify – not job changers. Certify by signed affidavit (IRS form) that employee was not employed for more than 40 hours total during the 60 days prior to starting work for you.
- Make sure new employee was not hired to replace another employee unless the employee being replaced “separated from employment voluntarily or for cause.”
- Make sure new employee is not a relative of the employer as defined by IRS rules.
Send me an e-mail if you have anything to say about this new bill.
