FAQs About Calculating and Claiming the Credit
(07/23/10) Q1: How will the new hire retention credit be claimed?
A1: The new hire retention credit will be claimed on the employer's income tax return.
(07/23/10) Q2: Do wages for purposes of the new hire retention credit include bonuses or taxable fringe benefits?
A2: All remuneration that is considered wages for federal income tax withholding purposes is counted for purposes of the new hire retention credit.
(07/23/10) Q3: Can a fiscal year taxpayer claim the new hire retention credit on its 2010 income tax return?
A3: A fiscal year taxpayer may claim the new hire retention credit on its 2010 income tax return if the requirements for the credit have been met by the end of its 2010 taxable year. For example, if a business with a taxable year beginning April 1, 2010, hired a qualified employee on March 15, 2010, and the employee met the requirements for being a retained worker by March 31, 2011, the business would be eligible to claim the credit on the return for the taxable year beginning April 1, 2010, and ending March 31, 2011.
(07/23/10) Q4: May an employer claim both the payroll tax exemption and the new hire retention credit with respect to the same employee?
A4: Yes, as long as the requirements for each are met.
- Business Credit for Retention of Certain Newly Hired Individuals in 2010
- HIRE Act: Questions and Answers for Employers