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New jobs bill, how do I get the most retention tax credits.

New jobs bill, how do I get the most retention tax credits. President Obama signed into law a new jobs bill (HIRE Act) in March of 2010. The jobs bill pays you Retention Tax Credits to hang onto your employees. As an incentive to retain employees who qualify for Social Security tax forgiveness, the jobs bill provides up to a maximum $1,000 tax credit to employers for each qualified retained employee as a Section 38(b) business tax credit. The credit is the lesser of 6.2% of wages or $1,000. To be eligible for the jobs bill credit the qualified retained employee must: Be employed for 52 consecutive weeks. There is no provision for prorating the credit. Earn wages during the last 26 week period that are at least 80% of the wages for the first 26 week period. Note These jobs bill tax credits will be available to be taken on employers’ 2011 income tax returns. The jobs bill does not allow carry back of any unused Section 38 business tax credits that are attri ...

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Training Your Staff on How To Use the Performance Appraisal Form

Training Your Staff on How To Use the Performance Appraisal Form Training your supervisors on how to complete the appraisal forms can be invaluable. Some of the factors that should be covered in such training include:   Relevant documentation about the employee's performance rating, including discipline and commendations, should be evaluated prior to completing the appraisal form. If this is not the employee's first appraisal, the appraisal from the prior year(s) should be reviewed. If the employee worked with another department during the rating period, input from that department's supervisor should be solicited. Make sure performance during the entire rating period — not just the most recent few months —is evaluated. Avoid personal feelings about the employee. The performance rating should be based only on job-related matters. Include examples in the comments. Avoid the "halo" effect (rating the employee high in all areas because of excellent performanc ...

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Hiring Incentives To Restore Employment Act Social Security Tax Credits, how to earn the credits.

Hiring Incentives To Restore Employment Act Social Security Tax Credits, how to earn the credits. President Obama signed into law the Hiring Incentives to Restore Employment Act in March of 2010. The Hiring Incentives To Restore Employment Act carries a Social Security tax forgiveness credit. It starts immediately for employers hiring qualified employees through the remainder of 2010. To be a qualified employee the new employee must: Start work after Feb. 3, 2010 and before Jan. 1, 2011. Be previously unemployed Not have worked more than 40 hours within the 60 days prior to the employee’s start date. Not replace current employees unless former employees were terminated for cause or left employment voluntarily. Not be related to the employer Note: Qualified employees may work less than full time hours, and under certain circumstances, may be rehired from a previous lay off. Check our article on how to obtain the maximum credits from the Hiring Incentives T ...

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Pay Deductions Quiz: Uniforms for a minimum wage employee.

Pay Deductions Quiz: Uniforms for a minimum wage employee. You hire a minimum wage employee to work as a cashier at your auto parts store. The employee signs an agreement to have $20.00 deducted from her first check to cover the cost of a uniform. You then, as agreed upon, deduct $20.00 from the employee's first check to cover the cost of the uniform. Have you violated any Fair Labor Standards Act (FLSA) requirements? Here, you have violated the FLSA's requirement that a nonexempt employee be paid the minimum wage for each hour worked. It makes no difference that the employee agreed to the deduction. Because the employee is a minimum wage employee, there was nothing that could legally be deducted from the employee's wage to cover the cost of the uniform. Any deduction puts the employee below the minimum wage level. Modern Business Associates frequently deals with payroll issues. As a Professional Employee Organization, our clients rely on us to help them effectively deal with these kinds ...

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Federal HIRE Act offers a tax credit on social security, how much can my company earn?

Federal HIRE Act offers a tax credit on social security, how much can my company earn? President Obama signed into law the Hiring Incentives to Restore Employment Act ( HIRE Act ) in March of 2010. The federal HIRE Act carries a tax credit on Social Security. It starts immediately for employers hiring qualified employees through the remainder of 2010. The best way to generate the maximum tax credit on Social Security is to hire qualified employees early in the year, since the exemption stops on wages paid after January 1, 2011. If an employee earning $40,000 annually is hired on April 1, 2010, the Social Security tax credit to the employer would be approximately $1,900. If the same employee was not hired until Aug. 15, 2010, the savings would be lowered to $950. The tax credit on Social Security can be used to offset scheduled tax deposit liabilities beginning April 1, 2010 and accrue with each payroll processed. Employers will receive a 6.2% Employer Social Security Tax Ex ...

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