Relevant

HIRE Act (IRS Update)

By Dawna Chase, Certified Quickbooks® ProAdvisor, Paraprofessional

The new FAQs on the payroll tax exemption provide that a qualified employee for purposes of the exemption may include an employee who has been on furlough, standby status, or temporary layoff. These situations will constitute a termination of employment for purposes of the exemption. The FAQs also clarify that self-employment does not count when determining whether the individual has been employed for 40 hours or less during the 60-day "lookback period," which ends on the date before the individual begins employment. Thus, self-employed individuals may qualify for the exemption if they meet other requirements. The FAQs also clarify that an individual "begins employment" for purposes of the exemption when all the facts and circumstances of the particular situation show that an employer-employee relationship has been established or is re-established.  Please contact Dawna Chase at 663-1661 for questions on implementation or where to get forms to make sure your payroll tax deposits are correct.