Intuit recently released a new tax table (21011) to address the proper set-up and calculations required for omitting the social security company taxes on qualified employees under the new HIRE Act. To properly update your QuickBooks system, click here.

If you have ANY questions, please feel free to contact us by e-mail or by phone at 906-337-2340.

The HIRE Act Brings Big Payroll Changes To Employers and Creates More Forms For Payroll.

Here’s what you need to know:

The HIRE Act offers employers temporary payroll tax breaks for hiring previously unemployed individuals and a business tax credit for retaining qualified individuals at least 52 weeks. The benefits can be substantial: up to $6,621 in payroll tax credits and up to $1,000 in business tax credit per eligible employee.

Reduced Social Security Taxes for Employers: Qualified employers receive a temporary payroll tax holiday from the 6.2 percent Social Security payroll tax on qualified individuals.

• The credit applies to wages earned from the date of enactment through December 31, 2010 for each new qualified individual hired after February 3, 2010 and through December 31, 2010.
• The maximum value of the credit would be equal to 6.2% of wages up to the FICA wage cap ($106,800) or $6,621.60 per qualified individual.
• A qualified individual “certifies by signed affidavit, under penalties of perjury, that such individual has not been employed for more than 40 hours during the 60-day period ending on the date such individual begins such employment.”

Business Tax Credit: Additionally, businesses are eligible for a $1,000 business tax credit for each qualified individual retained at least a year (52 consecutive weeks). The individual’s wages during the last 26 weeks must be at least 80 percent of the wages paid during the first 26 weeks of employment. The tax credit would be claimed on the 2011 business income tax return.

Click HERE to download the new form W-11, HIRE Employee Affidavit.

Click HERE to visit the IRS website for more details.

Small business clients may be interested in the revised Virtual Small Business Tax Workshop with updated content, interactive features and a new reference section.  There are currently 9 lessons online that cover topics such as running a business out of your home, payroll, taxes and federal unemployment (FUTA). All of these topics can be viewed at your leisure via your internet connection.

Check out the workshop website for more information.

The Internal Revenue Service and its private-sector partners are making FREE FILE available starting January 15, 2010. Most taxpayers can have free use of helpful tax preparation software and free electronic filing of the federal tax returns. 
There are many new tax breaks this filing season and Free File software can make it easier for people to find all the credits and deductions they are due.

Here is the direct link to the IRS site to learn more.

http://www.freefile.irs.gov/

The Internal Revenue Service is reminding tax-exempt organizations to make sure they file their annual information form on time. In 2010 the tax-exempt status of any non-profit that has not filed the required form in the last three years will be revoked.

For the filing requirements for exempt organizations, please see the IRS website.

Attention QuickBooks 2007 Users – By April of 2010, you must upgrade to QuickBooks’ 2010 version (Intuit only supports the last three versions with payroll tax table updates and maintenance releases). As a proadvisor, WherePeopleCount has a discount that we can extend to you ($159.95 plus tax for the Pro version). From time to time, retail outlets such as Office Max, Amazon, and Staples have this software on sale at a greater discount. Currently Office Max is advertising the Pro version of QuickBooks 2010 at a price of $149.95 through December 26, 2009.

Contact us if you would like to take advantage of our ProAdvisor discount.

Just in time for the holidays – the 2010 IRS W-4 is available and you can download it here.

For those of you getting ready for year-end activities, don’t forget to download a copy of our handy (and FREE!) Critical Due Date Checklist for Year-End 2009 & Beginning 2010.