This week’s question comes from Phil, a small-business owner. We just realized that one of our employees who we hired in April is eligible for the HIRE Act Credit. Can we still claim a HIRE Act credit for the second quarter? Answer: Under the Hiring Incentives to Restore Employment Act (HIRE Act), employers who hire certain unemployed workers are exempt from certain employment taxes. In order to qualify under the HIRE Act, the wages must be paid by a qualified employer “with respect to employment” in the period beginning March 19, 2010 and ending December 31, 2010.
HIRE Act Credit Still Available for Second Quarter
Employers may still claim the credit for the second quarter by filing Form 941-X, Adjusted Employer’s QUARTERLY Federal Tax Return or Claim for Refund.
IRS Releases Revised Form 941-X to Claim HIRE Act Credit for Previous Quarters
On September 11, 2010, the Internal Revenue Service (IRS) released a revised Form 941-X which employers can use to claim the HIRE Act credit for previous quarters. The new form adds lines 11a-11c to adjust for the credit. The new lines are for the following:
- 11a. Number of qualified employees first paid exempt wages/tips this quarter.
- 11b. Number of qualified employees paid exempt wages/ tips this quarter.
- 11c. Exempt wages/tips paid to qualified employees this quarter.
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