Did Your Business Claim Your Tax Credit?

If you recently hired a new employee, after February 3, 2010 to be exact, did you claim your credit on your recently filed second quarter 941? If the new hire was unemployed during the 60 days prior to beginning work with you or worked less than 40hours during that 60 day period you are entitled to a 6.2 percent tax credit on the wages you paid.

This credit, which represents the employer match of the new hire's social security tax, is claimed on lines 6c and 6d of your second quarter 941 form. In addition, since this HIRE Act was enacted on March 18, 2010, you also get to claim 12 days wages from March 19 to March 31 of the first quarter’s wages on your second quarter 941 form. See lines 12d and 12e for claiming that credit.

Be sure to have your newly hired employee(s) fill out form W-11 certifying that they meet the 60 day unemployment period and keep for your records. You do not need to file form W-11 with the IRS. Keep in mind that family members and relatives do NOT qualify for this credit.

One additional tax incentive related to this Act. If you retain your new hire for at least one year, you will receive a $1,000 income tax credit on your 2011 income tax return. This is a great tax break for those looking to hire new employees. If you have further questions on eligibility for this credit or need help completing your Form 941 please do not hesitate to contact us.

Anspaugh Joins VOF

Valley Oak Financial is pleased to announce that Lisa L. Anspaugh, CPA has joined our firm as a Public Accounting Specialist. Anspaugh, originally of Mattawan, has twenty years of accounting and banking experience combined. She serves on the audit committee for the Mattawan Public Education Foundation and is active in her church and the leadership team for the elementary ministry. She currently resides in Mattawan with her husband and their three children.