President Signs Jobs Bill Extending Section 179 Expensing Again
• Payroll Tax: The employer’s share (6.2%) of Social Security portion of FICA taxes limited to no more than $106,800 of wages.
• Qualified Employer: IRS includes businesses, agricultural employers, tax exempt organizations, and public colleges and universities.
Household employers are excluded.
• Qualified Employee: One that is employed after February 3, 2010, with taxes “forgiven” on wages after HIRE date of enactment, which was March 18, 2010.
• Qualified Individual: An individual who:
Begins work after February 3, 2010 and before January 1, 2011;
Certifies that they have not been employed for more than 40 hours during 60-day period before date of employment;
Is not employed by the employer to replace another employee of the employer unless the other employee separated voluntarily or for cause; and,
Is not related to a major owner of the business.
In addition to the tax forgiveness, the employer will receive a business tax credit of the lesser of $1,000 or 6.2% of wages paid during a 52 consecutive week period for each “retained worker” as follows:
• Retained Worker hired under the conditions qualifying for tax forgiveness;
• Employed for a period of not less than 52 consecutive weeks; and,
• Wages during last 26 weeks must be at least 80%.