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Local Impact of Payroll Tax Holiday

Submitted by: Rachael Renken on Jun 28, 2010 at 3:51 pm Tagged with: HIRE act, midlands businesses, south carolina businesses, Tax credits, Taxes Source: Derrick, Stubs and Stith

Local Businesses Failing to Claim
HIRE Act Payroll Tax Holiday Benefits

Many qualified South Carolina companies may be failing to take advantage of a payroll tax credit for hiring recently unemployed workers under the Hiring Incentives to Restore Employment (HIRE) Act, according to observations by local CPA and financial planning firms.

“Local businesses — especially those who hire summer help — may be leaving a significant amount of money on the table if they don’t explore this tax credit,” said Betsy Roof, CPA, a senior tax specialist with Derrick Stubbs & Stith who manages HIRE Act inquires for the firm. “This credit is especially useful because it can be applied to all types of businesses and employees, even those hired for part time work.”

The HIRE Act exempts qualifying organizations from the standard employers’ 6.2 percent share of Social Security payroll tax through the end of the year for previously unemployed workers hired between February 4 and December 31, 2010. The payroll tax holiday is capped at $6,621.60 per employee and is still able to be claimed for the remaining quarters as well as the previous quarter-via amendments.

“It’s just smart business to take full advantage of applicable tax credits,” said Certified Financial Planner™ and Core Advisors President, Thomas Gore. “Whether it’s $75 or several thousand dollars, that money could always be put to use in your personal or business situation.”

Among the items to qualify for the credit, employers must obtain a statement from all eligible employees affirming they have not been employed more than 40 hours during the 60 day period ending the day the employee begins work. The employees may not be related parties of the employer, and the exemption does not apply to employees hired to replace existing workers unless the separation was voluntary or for cause. Additional qualifying items may apply and you should talk to you tax advisor concerning these areas.

For specific information about claiming the HIRE Act tax credit, contact Betsy Roof at (803) 799-5810. For media inquires, contact Riley Communications at (803) 227-0914.

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About the Alliance
Financial planning firm Core Advisors, Ltd. and accounting firm Derrick Stubbs & Stith, LLP announced a strategic alliance in 2009 to provide streamlined financial services to the Southeastern business community. The relationship allows both firms to integrate the components of long-term financial planning with ongoing accounting services, tax planning and business consulting.

About the Firms
Derrick, Stubbs & Stith, LLP
Founded in 1950, Derrick, Stubbs & Stith is South Carolina’s 11th largest accounting firm, according to the SCBiz Book of Lists. A full service accounting firm with services ranging from accounting and tax planning/preparation to business valuations and litigation support, the firm is a member of the national RSM McGladrey Network of CPA Firms and remains committed to its founding mandate of integrating professional advice with personal attention to clients of all sizes.

Core Advisors, Ltd.
A fee-only financial planning firm focused on building and managing wealth for busy professionals, Core Advisors was conceived to provide objective, highly targeted advice for professional industries. With comprehensive services ranging from strategic cash flow management to integrated business planning, the company is committed to bringing a long-term vision and personal touch to wealth management.