nephew got his w2 and asking me about box 12c CC and the amount of his wages. looking at the back of w2 it says H.I.RE exempt wages. my question is : is this the credit that employers are getting for hiring unemployed. ? i'm thinking nephew does nothing about it. (he thought it meant he could claim exempt and subtract it)
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Code CC is for HIRE exempt wages, which meant the employer did not have to pay their portion of Social Security taxes. It is informational only for the employee - he does not get a credit for it. -
Have already seen this in my office....you are correct, he does nothing about it. Like what was mentioned, for information purposes only.Originally posted by taxmom34 View PostComment
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I'm assuming the idea behind putting it on the W-2 is so the employee can see how he was classifed in case he didn't qualify. And of course on SS copy to match up to 941's.JGComment
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Saw that on a W-2 yesterday. I thought that was what is was, but didn't have time to research it yet. Once again I have saved research time, by checking this Forum FIRST.
Thanks everyone.Comment
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I'm not sure this is a good thing but
I will bet the cost of a shared lunch in Asheville NC at any burger joint that every commercial software package out there will calculate this correctly if the W-2 is keyed correctly. I still like to understand the true significance of what I key in. It scares me what software will do for us every year that it didn't always do. I worry that at some point it won't be necessary to know how to do a return by hand in order to reliably and accurately do it on a computer. Still I refuse to give a return to a client until I feel that I understand it and can explain it. If after that I am questionable or even wrong, so be it because I did my best.Comment
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