Marian's Status for 60 prior to being hired Fwd: Alexandria SBDC

Begin forwarded message:

From: Patricia Melton <pmelton@alexandriasbdc.org>
Date: December 22, 2010 2:52:54 PM EST
To: Patricia Melton <pmelton@alexandriasbdc.org>
Subject: Alexandria SBDC - Time Sensitive Information

The Alexandria Small Business Development Center passes along timely business tips when we get them and we hope you’ll find this one on the 2010 HIRE ACT has value. It comes from Michael C. Montante, CPA & Associates and his contact information for clarification is provided below.  It is of a time sensitive nature, so please take note of the information.
HIRE ACT Check
Attention Small businesses in Alexandria and Fairfax:
We have a possible present to give yourself during the Holidays.
In reviewing with business clients for year end, we have discovered that many businesses who were eligible for the payroll tax credit for hiring unemployed people in 2010 were not claiming the credit.
So before we start researching the new tax credits in the laws just passed, let’s make sure we took advantage of what we have.
Okay, keep reading for each YES you have.
·          Did you hire anyone after Feb 3, 2010?   (Does not matter if Full-time, Part-time, temporary or how much they are getting paid.)
·         Were they unemployed for 60 days prior to your hiring them? (Defined as not paid for 40 hours or more though a W-2 paycheck for work during 60 days prior to hiring them.   Unemployed, Students, Contractors, Self Employed, seniors and Moms (or Dads) returning to the work force are all eligible.
·         Would you like to recoup 6.2% of what you paid the new employee? Meaning if you paid them $10,000 in wages, you could be eligible to get $620 back. There is no limit.   So if you paid $100,000, you could get $6,200 back. NOTE: this is for the employer portion only, the employees do not get any benefit, just you the employer.
What you have to do and who to contact for.
·         Call your Payroll Processor and ask them to get the credit started. Paychex said they can get the full credit applied to your 4thQ 941.   (MOST IMPORTANT: You will have to contact them now in the 4^thQ.) ADP said they will start the credit in the 4^thQ and for a fee will amend 2^nd & 3^rdQ.
·         Contact your CPA / EA to see if they can assist you if the Payroll Company cannot help.
·         Contact another party to help.
For further clarification, you can contact us at admin@montantecpa.com OR call 703-313-9802.
Michael C. Montante, CPA & Associates PC
6176 Grovedale Court
Suite 200
Alexandria, VA 22310
o) 703-313-9802
f) 703-997-2258
Knowledge and Expertise You Can Trust
IRS Circular 230 Notice: Unless expressly stated otherwise in this transmission, any tax advice contained herein, forwarded with or attached to this message was not and is not intended to be used, nor may it be relied upon or used, by any taxpayer for the purpose of (1) the avoidance of any tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions, or (2) promoting, marketing or recommending to another party any tax transaction or tax-related matters that may be addressed herein.
Best regards,
Patricia L. Melton
Counselor / Researcher
Alexandria Small Business Development Center
Suite 410
1729 King Street
Alexandria, VA 22314
PMelton@AlexandriaSBDC.org
www.AlexandriaSBDC.org
703-778-2960
FAX 703-778-1293

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Marian's Status for 60 prior to being hired Fwd: Alexandria SBDC - Time Sensitive Information