The HIRE Retention Credit is a general business tax credit that was created to encourage and reward employers for retaining employees who qualified for the HIRE Act Payroll Exemption for a minimum of 52 consecutive weeks from their start date. Employers must have:
- A signed W-11 form from each employee
- Paid wages to each qualified employee during their last 26 weeks that equaled at least 80% of the wages paid during the first 26 weeks
Credit amount equals the lesser of:
- 6.2% of wages paid by the employer in the first 52 weeks of employment, or
- $1,000
The retention credit:
- Is able to be claimed by employers that already claimed the Payroll Tax Exemption or WOTC for the same employee,
- Will be able to be claimed, at its earliest, on the 2011 tax return,
- Can be carried forward up to 20 years, and
- Is non-refundable
To discuss the HIRE Retention Credit with a Honkamp Krueger tax credit specialist, call 888.556.0123 or e-mail taxcredits@honkamp.com.