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What does the HIRE Act Adjustments utility do? The HIRE Act specifies that beginning with payroll processing in the second quarter the employer exemption for the US Social Security tax should be applied as you process your payrolls and thereby reduce the daily accrued liabilities. The utility will identify all qualifying employees based on the current "US HIRE Exemption" tax assignments as discussed above. It will then work through all pay periods with pay dates falling within the second quarter and apply adjustments to exempt the employer portion of the US SS tax. The utility will also make adjustments for pay dates occurring from March 19, 2010, through March 31, 2010 to record just the earnings subject to information associated with the US SS tax for qualifying employees. This is necessary to correctly calculate the HIRE Act Exemption credit that can be taken on the second quarter 941 as well as have complete earnings subject to information for anticipated end of year W-2 changes. At the end of the processing the utility will display a simple text log file that documents how the various pay periods were processed. Retroactively applying the exemption to previous pay periods in the second quarter will have the effect of reducing the stated daily liabilities and calculated summary tax liabilities on the 941. Depending on your situation this could create an overpayment amount entry on the second quarter 941. |