BOSS Business Services 3225 McLeod Drive Las Vegas, NV 89121 888.969.BOSSwww.BossOffice.com
Hiring Incentives to Restore Employment (HIRE) Act
that President Barack Obamasigned into law on March, 18, 2010, the employer portion for Social Security (6.2%) of thisobligation has been waived (there is also a Medicare portion of 1.45% that remains). This makesthe option more enticing to Sally.As a new hire, Brooke would still be obligated to pay the 6.2% Social Security tax on her income, but Sally, as the employer, is off the hook for the federal tax obligation for the look if Sally hired Brooke to start work on July, 1, 2010:
(annual salary × .
(Social Security Portion of the FICA tax) × 18
(wagesbeginning on July 1,
, the 18
day of the year)] =
18 (total payroll tax exemption for Sally through her company, The Terrace Group)
The above formula reflects any new employee hired after February 3, 2010 and earned wagesafter March 18, 2010, when Obama signed the bill into law.(Note: As an employer, Sally still must keep Form W-11 in her files. A W-11 serves as theaffidavit from Brooke stating that she hadn¶t been employed for more than 40 hours during the60 days prior to getting her new job).
Additionally, if Brooke stays employed through The Terrace Group for at least 52 consecutiveweeks, Sally, as the employer, will receive an income tax credit in 2011 of $1,000, or 6.2% of wages paid to Brooke over a 52-week period, whichever is less.