You have probably read or heard items about the HIRE Act in the HR industry news recently. The primary focus of the HIRE Act legislation is to accelerate the hiring of unemployed workers.
The HIRE Act contains provisions that affect employers, including a payroll tax exemption. These provisions include reduced payroll taxes and increased tax credits for employers that meet certain eligibility requirements.
All eligible employees must complete a Form W-11, Hiring Incentives to Restore Employment (HIRE) Act Employee Affidavit, to confirm that they are qualified employees under the HIRE Act.
The Sage Abra Q2 2010 Tax Update addresses the requirements of the HIRE Act in Sage Abra Suite, including:
- A new field, HIRE Act Qualified Employee, has been added to allow you to indicate an eligible employee (per the qualifications on the HIRE Act). This field has also been added to the Data Dictionary so you can use it with the Expression Builder, Abra Query, and Crystal Reports®.
- For eligible employees, the system will add new tax codes that will accumulate the taxable wages eligible for the credit. These tax codes will be used to populate the 941 and year-end reporting.
- All standard reporting will display the correct employer liability based on the eligible wages.
- The 941 form and Worksheet, Pre-Close Form, and the Edit Quarter-/Year-End user interface will be updated based on the new 941 form issued by the IRS.
- The customer will have the ability to adjust the 941 form to record the taxable wages for Q1 that are eligible for the tax credit.
- The Trial Quarter Close and Final Quarter Close processes will be updated based on the new 941 requirements.
- Year-end reporting, including the required W-2 and W-3 changes, will be updated for Q4.