IRS Releases HIRE Act Questions and Answers

The Internal Revenue Service (IRS) has created a new webpage to assist employers with questions on the Hiring Incentives to Restore Employment (HIRE) Act, recently enacted legislation that provides tax breaks to employers that hire and retain new employees in 2010.

The “HIRE Act: Questions and Answers for Employers” page provides frequently asked questions and answers broken down by two major categories: the payroll tax exemption for hiring qualified workers and the business credit for retention of certain newly hired individuals in 2010. Sub-categories on the payroll tax exemption include FAQs about the payroll tax exemption and qualified employers; qualified employees; and claiming the payroll exemption. A menu of the questions and answers is available on the IRS website.

The Senate recessed without giving final approval to an extension to the COBRA subsidy program, so workers who are involuntarily terminated after March 31, 2010 will not be eligible for the subsidies for healthcare continuation coverage.

The Senate is scheduled to return April 12, when proponents of an extension are likely to push for Congress to act.

The COBRA subsidy program was created by the American Recovery and Reinvestment Act of 2009 (ARRA) . Under the law, as amended, workers who are or were involuntarily terminated between September 1, 2008 and March 31, 2010 are eligible for 65 percent COBRA subsidies. Workers can receive the subsidies for up to 15 months.

The Senate recessed without voting on House-approved legislation that would extend the program through April. While the Senate has yet to act on that legislation, th