HIRE Act / Form 941 - 941b

[Medlin Software, Dennis]

A draft format for Q2 941 is available if you search the internet long enough. (Not yet posted on the IRS site.)

Speculation is there will be three versions of the 941 for 2010:

Q1

Q2

Q3/4 (with the new 12c, 12d, and 12d from Q2 removed)

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Form 941b is not expected to be changed.

[BulldogTom]

Just out of curiosity, how are you going to track the employees who qualify? Is there going to be a separate code? And will you have a report for the credt for 52 weeks of retention and the 80% rule for the second 26 weeks?

Any word on what the affidavit is going to be to certify that they have been unemployed for 60 days? Does Medlin have an affidavit or are you leaving that up to your customers to find?

Just asking. I have no idea how we are going to handle this at our company. We are hiring about 70 people in the next 2 months.

Tom

Lodi, CA

[Medlin Software, Dennis]

Tom,

Google "HIRE Act 941". You will find several blogs and other references. After reading a couple, you will get a good handle on the changes/requirements. The IRS site has a news item as well.

The retention credit will likely be a separate form/worksheet (not a payroll item specifically) the employer fills out to get the retention credit. It affects the employer/business tax forms, not payroll reporting.

Employers can come up with their own affidavit according to what I have read, and the IRS will likely have a boilerplate form one can use. There is no provision for filing or verifying such affidavits, just have to keep them in case of audit. The liability of the facts is on the employee, not the employer, with no penalty I can find other than criminal perjury. If the retention form/worksheet needs something from Medlin we cannot already provide, we will likely come up with something at that time.

Medlin Payroll:

Doing the coding now (well I am taking a few minutes to write this, and throw down a soda and sandwich)

To "mark" the employee, you will enter "HIRECREDIT" in the employee memo field.

We determine qualified employees by checking to see if "HIRECREDIT" is in their memo field, then checking the hire date (an existing data field).

Payroll Tax Summary - A new column in the top of the report (if applicable) showing the HIRE credit amount. The "deposit" amount will be reduced by the credit as needed. On quarterly tax summaries, the 941 section will show the appropriate items for whichever 2010 quarter is being printed.

941b - No changes to the form. Calculations include appropriate checks to qualified employees, including not reducing >Q1 liabilities for the Q1 carryover.

941 (any quarter) in Version 4.2 Revision 18 and later - limited to checks for 2010 since the forms will not work for any other year.

Q1 941 - unchanged

Q2 941 - Updated to the current draft format, including form layout and new calculations.

Q3/Q4 941 - Updated to what I think the form will look like, the draft Q2 form, without the Q2 12c, 12d, and 12e. I suspect this form is at least a month away from an official draft version.

Dennis

[Medlin Software, Dennis]

At the top of our site, there is a link to information on the HIRE act. I will be posting sample pdf's as I get them finished.

[BulldogTom]

Thanks for posting. I know it must be a busy time for you. Good luck on this.

Tom

Lodi, CA

[Medlin Software, Dennis]

Busy - always.

Besides being sure of death and taxes, I can be sure of lifetime employment as payroll never gets easier.