Dear AccountMate Clients,
A Payroll update for the HIRE Act Payroll Tax Exemption Form has has just been released. Simply put, the HIRE Act, signed into law on 18 March, allows employers who hire certain unemployed workers this year (after 3 Feb 2010 and before 1 Jan 2011) to qualify for a 6.2 percent payroll tax incentive – in effect exempting the employer from the employer’s share of social security tax withholding. For additional information, please see: http://www.webcpa.com/news/IRS-Releases-HIRE-Act-Payroll-Tax-Exemption-Form-53826-1.html and also look up current payroll tax exemption info on the IRS website and note the Technical Tips below specifically addressing questions related to the HIRE Act.
If you would like us to forward you this update, or if you’d like NexLAN to install it remotely (which would be a billable event), please hit <reply> or e-mail directly to nexlan@nexlan.com and we will respond promptly.
Regards,
Kevin E. Stroud
NexLAN, LLC
https://nexlan.com
Technical Tips
Versions: AM7 for SQL, Express and LAN
AM6.5 for SQL, MSDE and LAN
VAM/LAN 5
Module: PR
Q: Does AccountMate support the recording of exemptions under the Hiring Incentives to Restore Employment (HIRE) Act of 2010?
A: Yes, AccountMate supports the recording of HIRE Act exemptions. This new feature is included in the 2010 Payroll Tax Subscription Program released on or after June 29, 2010. When you download the Payroll Tax Subscription Program, it includes instructions on how to use the HIRE Exemption feature.
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Versions: AM6.5 for SQL, MSDE, and LAN (using standard Payroll)
VAM/LAN 5
Module: PR
Q: I have installed the 2010 Payroll Subscription Program released on June 29, 2010; however, when I access the Payroll Tax Deposit function from the Transactions menu, I cannot find the HIRE Exemption function. I have also accessed the Group/User Setup function in the AccountMate Administrator program and still, the HIRE Exemption function is not there. How do I activate the HIRE Exemption function?
A: If you are using AccountMate 6.5 (for LAN or SQL) or older versions, perform the following steps to activate the HIRE Exemption function:
1. Install the 2010 Payroll Subscription Program released on or after June 29, 2010.
2. Access the PR Module Setup function in the main AccountMate program; then, click OK.
3. Access the Group/User Setup function in the AccountMate Administrator program; then, mark the PR HIRE Exemption checkbox.
4. In the main AccountMate program access the Payroll Tax Deposit function from the Transactions menu; then, verify access to the HIRE Exemption function.
Note: If you are using VAM/LAN 5, exit from the AccountMate program after step 3; then, launch AccountMate again.
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Versions: AM7 for SQL, Express and LAN
AM6.5 for SQL, MSDE and LAN
VAM/LAN 5
Module: PR
TIP: AccountMate does not generate in the Payroll module the journal entries for HIRE exemption claims; however, the new HIRE Exemption function provides the option to create in the General Ledger (GL) module journal entries for the HIRE exemption claims. To take advantage of this feature, you must mark the Use Auto Batch Numbering checkbox in the GL Module Setup ► General tab. If you choose to create a journal entry, ensure that you post it using the Post JE Batch to GL function in the GL module.
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Versions: AM7 for SQL, Express and LAN
AM6.5 for SQL, MSDE and LAN
VAM/LAN 5
Module: PR
Q:Is there a report that provides information of both the claimed and voided HIRE exemptions?
A: Yes, there is. You can view the summary of your claimed and voided HIRE exemptions in Reports ► Check Reports ► Tax Deposit Check Report. The claimed HIRE exemptions are treated similar to tax taxpayments; thus, it is included in the Tax Deposit Check Report.
Note: The Tax Deposit Check Report displays the total exemptions claimed or voided per claim date only. You may access Utilities ► Table Browser and Exporter ► PRHIRE table for the details on the claimed and voided HIRE exemptions.
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Versions: AM7 for SQL, Express and LAN
AM6.5 for SQL, MSDE and LAN
VAM/LAN 5
Module: PR
TIP: AccountMate does not support tax deposit overpayments except when you claim a COBRA credit and the Reduce Federal 941 Tax Liability checkbox is not marked. It is recommended that you claim HIRE exemptions before you cut or issue a tax deposit check especially when you are making the last deposit check for the quarter.
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Versions: AM7 for SQL, Express and LAN
AM6.5 for SQL, MSDE and LAN
VAM/LAN 5
Module: PR
Q: I cannot find code CC in the W-2 Information Update function. How can I record in Form W-2 the transactions pertaining to the HIRE Act?
A: The new code CC, which is created for Form W-2 ► box 12 so employers can identify the qualified employees and can report the wages and tips amounts covered by the HIRE exemption, is excluded from the HIRE Exemption enhancement implemented in the 2010 Payroll Tax Subscription program released on June 29, 2010. This will be addressed in the future Payroll Tax Subscription program releases.
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Versions: AM7 for SQL, Express and LAN
AM6.5 for SQL, MSDE and LAN
VAM/LAN 5
Module: PR
Q: Subsequent to recording HIRE exemption for the quarter, I voided a payroll check for an employee who qualified for HIRE exemption. When I generated Form 941, why did lines 6c and 6d show the same amounts before the check was voided?
A: Voiding a payroll check does not automatically adjust the exempted wages that was recorded using the Hire Exemption function. To update the values displayed on Form 941, you must void the claimed HIRE exemption and post another claim that will reflect the adjusted exempted wages for the employee whose check was voided.
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