Am I missing something on the New Hire Retention Credit - if employee had to work for employer for a total of 52 weeks prior to employer being eligible for credit and the 52 weeks did not begin until the W-11 came into play which was in March of 2010; how can any employer be eligible in 2010? Form 5884-B is available in 2010 for this credit.
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Date of Hire
To take this credit, you need a time machine. See IRS Form 2106-T, Time Travel Expenses.
I don't have any clients that would qualify for this credit...
But I'll take the question. It sounds fun. Remember those story problems in math class? A train leaves Los Angeles at 5:00 AM, heading east at 85 MPH, and a second train leaves New York at 9:00 AM, heading west at 90 MPH...
So if you hire one employee on February 5, 2010, and the employee works for you for 52 consecutive weeks...
The part that you're missing is:
The period of 52 consecutive weeks does not have to end in 2010.
The date of hire must be after February 3, 2010 and before January 1, 2011. Therefore, the period of 52 consecutive weeks will end in 2011. But the credit can be claimed on the 2010 tax return.
The March date pertains to the employer's tax year, not the date of hire. The credit is available for tax years that end after March 18, 2010.
So if you hired someone on February 25, 2010, and they're still working for you, and they meet all the other criteria, then you've got your 52 consecutive weeks--assuming that your fiscal year ended after March 18, 2010.
Got it?
Okay, I'm plagiarizing most of this straight from the IRS website:
Here's the link:Q3: For what years can an employer claim the new hire retention credit with respect to a retained worker?
A3: The credit may be claimed for a retained worker for the first taxable year ending after March 18, 2010 (the date of enactment of the HIRE Act), for which the retained worker satisfies the 52 consecutive week requirement. However, since retained workers must be qualified employees, the credit applies only for workers hired after February 3, 2010, and before January 1, 2011.
BMKBurton M. Koss
koss@usakoss.net
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The map is not the territory...
and the instruction book is not the process. -
New Hire Retention Credit
So, if the employer is a calendar year taxpayer and hired employees in February of 2010 then the employer will be eligible for credit in 2011, but not 2010, correct??Comment
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Correct
and correct...Comment
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