On March 18 we informed you that President Obama had signed the HIRE Act into law and that Sage Abra HRMS was working to implement the changes into the product offering to help organizations comply with the legislation. Provided below is a summary of the Sage Abra updates planned for the Q2 tax update.
We will be providing a document called “HIRE Act Resource Guide” to help our customers with the changes required with the Q2 update.
Please feel free to contact Sage Abra Tech Support (800-829-0170) if you have any questions.
HIRE Act Update
The primary focus of the HIRE Act legislation is to accelerate the hiring of unemployed workers. It has provisions that affect employers, including a payroll tax exemption. The provisions include reduced payroll taxes and increased tax credits for employers that meet certain eligibility requirements.
All eligible employees must complete a Form W-11, Hiring Incentives to Restore Employment (HIRE) Act Employee Affidavit, to confirm that they are qualified employees under the HIRE Act.
We will be addressing the HIRE Act in Abra SQL HRMS (Payroll), with updates available in the Q2 Tax Update. Here is an update of what Sage is planning to provide:
- A new field, HIRE Act Qualified Employee, has been added to Employee Tax UI.
- When the Sage Abra user calculates payroll for an exempt employee the employer portion of U.S. Social Security will not be calculated.
- The line representing the Employer Portion of USSS will not appear on the Pre-Check Register and the Payroll Register reports.
- The 941 form will be updated based on the new 941 form issued by IRS.
- Necessary changes for Year-End reporting are planned to be included in the Q4 Tax Update.