Answers to questions about the payroll tax exemption and the retention credit for new workers employed under the Hiring Incentives to Restore Employment Act (Pub. L. No. 111-147) were added July 29 to a list of questions and answers posted to the Internal Revenue Service website.
The IRS added 10 answers to questions about the payroll tax exemption, including how employers can claim the payroll tax exemption for wages paid to qualified employees from March 19, 2010, to March 31, 2010, and how IRS will treat the credit claimed for wages paid in the first quarter.
The IRS also answered a question about the work performed as a self-employed individual, saying that only work performed as an employee counts in determining whether an individual has been employed for 40 hours or less during the 60-day period for qualified employee status.
Answers to 13 questions were added about the retention credit process, including when an individual begins employment for purposes of the HIRE Act.
Click here to go to the IRS's Q&A page to read more about the HIRE Act.