aukemacompany.com

The IRS has revised the 941 form to reflect the new Social Security tax exemption for hiring the unemployed. Employers don’t have to pay Social Security tax on the wages of employees hired after February 3, 2010 who certify on form W-11 (form enclosed) that they have worked fewer than 40 hours in the previous 60 days. Students who didn’t work while they were taking classes are eligible. The exemption applies to wages paid after March 18, 2010 and before January 1, 2011.

However, the worker’s share of social security & medicare tax, along with the employers’ portion, must still be collected & paid to the IRS. The exemption will be calculated & refunded on the quarterly 941 form.

If you have any employees that fall under this exemption please let us know before we file your second quarter 941 quarterly report. Please provide us with form W-11 for those employees.

Call with any questions 616.494.0342.