Businesses hiring unemployed workers can qualify for an exemption from paying the 6.2% Social Security payroll tax this year. The IRS has released a revised version of Form 941 that can be used to claim the exemption beginning with the second quarter of 2010.
The exemption is available only for hires meeting certain requirements. Generally they must have been unemployed at least 60 daysand hired after February 3, 2010. The exemption applies to compensation paid after March 18, 2010 and before January 1, 2011. Note that although employers are excused from making this payment, the amount of Social Security benefits paid to the workers will not be affected.
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Tags: Payroll Tax
