CDM+ Knowledge Base

On March 17, 2010 the U.S. Congress enacted a tax incentive plan for employers to hire persons who have been unemployed for at least 60 days. For detailed information on this payroll tax benefit to employers, go to http://www.webcpa.com/news/IRS-Releases-HIRE-Act-Payroll-Tax-Exemption-Form-53826-1.html.

 

There is a new 941 form effective with the second quarter of 2010 in order to report payroll paid to employees who qualify for the HIRE Act payroll tax incentive. After installing this update, go to the Employee Information window and click on the HIRE Act checkbox for each employee who qualifies. Also be sure to enter the employee’s Start Date on this window.

 

 

CDM+ will report on the new 941 form the tax savings for all payroll paid after the start date of each qualifying employee. The Taxable Income Detail report will also display the FICA savings on the employers share. In addition to marking past payroll for the HIRE Act, subsequent payroll postings will reduce the tax due postings to Accounts Payable accordingly.

 

 

See this tech note for details.