Wednesday, June 23, 2010

New Hire Act- Payroll Software

Washington has recently enacted the HIRE Act (Hiring Incentives to Restore Employment). This new law includes two tax incentives to be claimed by employers who hire workers who were previously unemployed or only working part time. The tax benefits apply to workers hired after Feb. 3, 2010 and before Jan. 1, 2011 and/ or for each worker employed for at least a year.

The first payroll tax exemption involves the employer’s share of Social Security tax on qualified employees starting on wages paid on March 19, 2010. The employer will be exempt from their 6.2% Social Security tax through December 31, 2010.

The second payroll tax credit (hire retention credit) applies in the case of the newly hired workers staying employed for at least a year. Business owners may claim an additional general business tax credit, up to $1,000 per worker, when they file their 2011 tax returns.

Employees must certify by a signed affidavit, under penalties of perjury, that they have not been employed for more than 40 hours during the 60-day period ending on the date they started employment. The IRS has issued Form W-11 that business owners may use as the affidavit. You are allowed to use another similar statement if it contains employee name, Social Security Number, first date of employment and name of employer. The employee must sign it under penalties of perjury.

The IRS has released a modified 2010 Form 941 in order to claim the payroll tax exemption. Employers will start using this form for second quarter 941 filing. The payroll tax exemption is based on when the wages were paid regardless of when the wages were earned. Wages paid to qualified employees during the first quarter from March 19, 2010 to March 31, 2010 are claimed on the second quarter Form 941 as a credit. The amount of the credit will be refunded to the employer or applied towards a liability in a following quarter. The exemption must be claimed on the return for the quarter in which the wages were paid.

Use Form W-11,Employee Affidavit,to confirm that an employee is a qualified employee under the HIRE Act. Claim your payroll tax exemption using Form 941 and Payroll Mate payroll program.

Download a free trial of Payroll Mate small business payroll software .

Monday, February 22, 2010

2010 Form 941- First Quarter

Use Payroll Mate payroll software to print Form 941. 941 Form is a quarterly form used to report wages you have paid,tips your employees have received,federal income tax you withheld,both the employer’s and the employee’s share of social security and medicare taxes, current quarter’s adjustments to social security and medicare taxes for fractions of cents, sick pay, tips, and group-term life insurance,advance earned income tax credit (EIC) payments and credit for COBRA premium assistance payments.

Payroll Mate automatically populates form 941 with payroll information that has been entered in the program. The first quarter 941 form is due April 30, 2010.

Business owners try our free payroll software download easily print Form 941.

Monday, February 15, 2010

Free 1099 Software

It is a busy time of year trying to issue W2/1099 forms,file W2/1099 forms and starting new payroll for the year. As many of you know Payroll Mate includes W2 forms however for those of you who need to issue 1099 forms you may need different software. Deadlines are approaching for filing 1099/1096 forms. The deadline for 2009/2010 is March 1, 2010.

Try this free 1099 software.

W2 Mate supports 1099 MISC, 1099 INT, 1099 DIV and 1099 R forms. This 1099 software will print recipient copies to blank paper and 1099 A/ 1096 data to preprinted red ink laser forms per IRS regulations.