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 ...

You’ve just grown to have 20 employees. Did you know it comes with COBRA responsibilities? Here’s one tip when terminating employees or reducing their hours: Employers offering group healthcare plans (including medical, dental, and vision) likely are covered by the Consolidated Omnibus Budget Reconciliation Act (COBRA), or an even more restrictive state or local law. COBRA notices need to be issues correctly to avoid penalties. Under COBRA, an employer with 20 or more employees must provide terminated workers and workers whose hours have been reduced (as well as qualified beneficiaries) with an opportunity to continue group coverage, usually for up to 18 months. (Continuation costs are borne by the employee.) You can be fined both excise taxes and Employee Retirement Income Security Act of 1974 (ERISA) penalties for failing to properly notice employees, and can even be held liable for an unnoticed beneficiary's medical claims and related legal fees. A note about usin ...

Payroll Service Companies – Common Features They Offer Payroll service companies provide a common suite of core services. As in introduction to what payroll service companies do, consider the following core services. Calculating Payroll for each employee Calculating tax obligations for each employee Printing Checks for payroll Service companies also deliver the checks Creating Reports for Management Additional services sometimes include:   Affordable 401 (k) plans to offer employees. Payroll service companies help level the playing field with the benefits offered by your larger competitors. Employee Manuals provided and customized by Payroll Service Companies keep you from trying to reinvent the wheel and stay up to date with state and national legislation to more effectively avoid employee claims. Automatic check signature can save your team time each payroll by not requiring an executive to sign the checks, one at a time. Direct Depo ...

Tax credits mean good news for employers!    On March 18, 2010 President Obama signed into law the Hiring Incentives to Restore Employment Act (HIRE Act).  The HIRE Act carries two significant tax incentive components for employers:  a Social Security tax forgiveness and a retention tax credit.  The first starts immediately for employers hiring qualified employees through the remainder of 2010 and the second can be earned by employers who retain qualified employees for a minimum of 52 consecutive weeks.  The following is an overview of how both incentives work.   Social Security Tax Forgiveness: Employers will receive a 6.2% Employer Social Security Tax Exemption on wages paid to “qualified employees” after March 18, 2010 and before January 1, 2011, up to the Social Security maximum of $106,800.  The maximum credit per qualified employee is $6,621.  To be a qualified employee the new employee must: ·  & ...

Health Care Reform Legislation Signed Into Law - Patient Protection & Affordable Care Act (H.R. 3590) and the Health Care and Education Affordability Reconciliation Act of 2010 (H.R. 4872) On March 23, 2010, President Barack Obama signed the Patient Protection & Affordable Care Act (H.R. 3590) and the Health Care and Education Affordability Reconciliation Act of 2010 (H.R. 4872) into law. This combined legislation significantly reforms health care, and will have an eventual impact on certain employers. (A summary of the legislation is available here.)Although the extent of the laws' impact on employers is unknown at this time (and at least 14 states have already filed federal legal challenges attacking the 2,400-page legislation’s constitutionality), MBA will continue to provide you with important updates regarding the steps you must take to ensure you are in compliance. Please note that the majority of the reforms affecting employers do not become effective until 2014; however, cert ...