Apr 04 2010
Business Credit for Retention on Hired Individuals in 2010
Q: What is the new hire retention credit and what does it apply to?
A: This is a general business credit to encourage retention of the new hires. The employer may claim the credit for each employee who is a qualified employee for purposes of the payroll tax exemption and who remains an employee for 52 consecutive weeks, provided that the employee’s pay does not decrease significantly in the second half of the year. The amount of the credit is the lesser of $1,000 or 6.2 percent of wages (as defined for income tax withholding purposes) paid by the employer to the retained qualified employee during the 52 consecutive week period. The credit cannot be carried back but may be carried forward.
Q: How will the new hire retention credit be claimed?
A: The new hire retention credit will be claimed on the employer’s 2011 income tax return.
For more information call us or send us an Email: margo@torocpa.com
Toro Accounting & Consulting Services LLC
140 N. Westmonte Dr. Suite 205
Altamonte Springs, FL 32714
Tel: (407) 389-0260
Fax: (321) 248-0150
