Updated 941 Forms are now available through the 2010 Q2 Payroll Update. We encourage all Sage ERP MAS 90 and 200 Payroll customers to download and install this update, which captures and processes the employee information required for compliance with the new HIRE Act. The new 941 form is required for Q2 filings for all Payroll customers even if the HIRE Act does not apply to you. New Tax Table Updates for 2010 Q3 are also available. To download the 941 Forms and Tax Table updates:
1. Login to Sage Software Online by following this link: .
2. For 2010 Q2 Payroll Updates, follow this link.
3. For Tax Table Updates, follow this link.
Like all updates to a live system, every precaution should be taken including verifying a reliable back up (and working with a MAS 90 and 200 professional).
The HIRE Act encourages companies to hire unemployed workers by exempting certain wages from the employer’s portion of Social Security taxes (payroll tax exemption), and by providing employers with a business tax credit if new hires are retained for at least 52 consecutive weeks. For an employer to receive these tax benefits, the unemployed worker must be a “qualified individual”. A qualified individual is anyone who:
- Begins work for a qualified employer after Feb. 3, 2010 and before Jan. 1, 2011
- Certifies by signed affidavit (under penalties of perjury) that he has not been employed for more than 40 hours during the 60-day period ending on the date the employment begins
- Is not employed to replace another employee of the employer unless that former employee separated from employment voluntarily, or for cause
- Is not related to the employer (under rules similar to those for related individuals in IRC §51(i) ) [ IRC §3111(d)(1) ].
The IRS has drafted Form W-11, Hiring Incentives to Restore Employment (HIRE) Act Employee Affidavit, to help employers meet the second requirement under “qualified individual”. The form instructions state that the employee must complete and sign the affidavit, or a similar statement, under penalties of perjury, for an employer to receive the tax benefits under the HIRE Act. The Form W-11 requires qualified individuals to provide their name, Social Security Number (SSN), first date of employment, and name of the employer.
Additional information can be found on the IRS website.