News from Breedlove and Associates
HIRE Act Signed Into Law
Good News for Many of Your Families and Nannies!
Yesterday President Obama signed into law a new job creation act entitled Hiring Incentives to Restore Employment (HIRE Act). The HIRE Act will reduce the cost for your families who hire a qualified worker(s) after February 3, 2010 (a qualified worker is defined as anyone who has worked 40 hours or less in the 60 days preceding employment).
Those families who hire a qualified worker(s) will be entitled to an exemption on the employer portion of the Social Security tax. The 6.2% exemption applies to all wages paid in 2010 between the dates of March 19 and December 31.
Note: Employers will still be required to pay Medicare (1.45%) as well as Unemployment and any other applicable state taxes, but the HIRE Act will reduce the employer’s payroll tax obligation by more than 60%.
Logistically, families will need to get their new employee to sign an affidavit stating that he/she has been unemployed or underemployed per the HIRE Act qualifications. Families will then be required to report the New Hire and deduct the Employer Social Security Tax from their estimated federal payments throughout the rest of the year. Obviously, those families who join our service can rest assured that we will take care of all these details on their behalf.
If you have any questions about the new law, please contact us. In the meantime, we’ll be updating our Payroll Calculator at www.breedlove-online.com in the coming days. As always, we also stand ready to provide each of your families with a complimentary, no-obligation consultation to discuss this and other tax, legal and budgeting issues that may affect them.
For assistance and support, please contact (888) 273-3356 or clientservice@breedlove-online.com
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