How to implement the (HIRE) Act in QuickBooks:

1. Make sure that you have the most recent
   release of the tax table update. (To check, click on Employees  & Get Payroll Tax Table
   Updates.)
2. The following screen will hopefully say “You are using tax table
   version 21012.” 
3. If not, click on "Update."
4. Click on Employees, Payroll Setup.
5. Click on #3, 
   Employee Setup. (Two drop down boxes appear.)
6. Click on Employee List drop down box. (The Review Your Employee List appears.)
7. Highlight the qualified employee.
8. Click Edit.
9. Click "Next" 7
   times until you get to the Federal Information screen.You should now see a “HIRE Act Exemption” Check Box.
10. Click on the down arrow to the right and select “Qualified Employee”
     
    If the employee doesn’t qualify, it will tell you (based on the
    hire date info which can be changed.)
     
    If it’s OK, click "Next" and "Finish" to save the change.

Lately We've been getting questions about
the Hiring Incentives to Restore Employment (HIRE) Act.

There are
two separate tax benefits to employers:

1)
Employers get an exemption from the employer's 6.2 percent share of
social
security on wages paid to QUALIFYING EMPLOYEES, (see the second faq,pdf link below for a definition), effective for wages paid from March 19,
2010 through
December 31, 2010.

2) In addition, for each qualified employee
retained
for at least 52 consecutive weeks, businesses will also be eligible for a
general business tax credit, referred to as the new hire retention
credit, of
6.2 percent of wages paid to the qualified employee over the 52 week
period, up
to a maximum credit of $1,000.

Like all government programs,
there is
paperwork galore. The employer needs to get a signed statement (Yes,
Matilda,
there's a form for that called a W-11 http://www.irs.gov/pub/irs-pdf/fw11.pdf
) from each eligible new
hire certifying under penalties of perjury, that he or she was not
employed for
more than 40 hours during the 60 days before beginning employment with
that
employer.

As you might imagine this act has generated a
ton of questions:
For answers to some, see the following document: http://www.paychex.com/pdf/www/hireact/hire_act_faq.pdf

For answers to
the rest, we highly recommend that
you consult with your own tax professional.