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The government doesn't know, how should I know?
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The government doesn't know, how should I know?
Discuss employment-law issues such as family leave, overtime, disabilities law, harassment, immigration and termination.
I finally got a copy of the w-11 HIRE Act employee affidavit. On the form it explains a "qualified employee". one paragraph states that a qualified employee is one who is not hired by us to replace an
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Forums » Topic Forums » Legal Forum » The government doesn't know, how should I know?
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The government doesn't know, how should I know?
posted at 4/19/2010 10:11 AM EDT
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Posts: 188
First: 10/11/1999 Last: 5/5/2010 |
I finally got a copy of the w-11 HIRE Act employee affidavit. On the form it explains a "qualified employee". one paragraph states that a qualified employee is one who is not hired by us to replace another employee unless that employee voluntarily quits or is separated from employment for cause (including downsizing) I've been shuffled to three different departments in the IRs to get a clearer idea of what this means. We terminate employees all the time for "poor work performance"-is that "cause" or is it just if the employee quits, as one rep from the IRS told me? thanks, |
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The government doesn't know, how should I know?
posted at 4/19/2010 11:00 AM EDT
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Posts: 562
First: 11/12/2009 Last: 9/14/2011 |
"Cause" or "For Cause" typically means non-performance or violation of work rules.
If I were still in corporate HR, I'd go with that interpretation of "for cause". It seems as though the only reason you can't use the tax credit provisions would be to replace laid off employees. |
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The government doesn't know, how should I know?
posted at 4/19/2010 5:41 PM EDT
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Posts: 2146
First: 2/15/2006 Last: 9/14/2011 |
Actually Nork, I was surprised to see that the IRS FAQs regarding HIRE specifically state (against all other documentation that I have read) that you can use the HIRE credit for laid off positions.....and even if you rehire someone into the same position as long as they had been out for at least 60 days and hadn't worked more than the 40 hours in the criteria.
I was shocked to see that in the IRS FAQs though......Everything else I read stated that you had to be creating a NEW position not filling a previous one....interesting.... QE5: Does the payroll tax exemption apply to wages paid to an employee who was previously laid off and then rehired by the same or a related employer after a 60-day period? A-QE5: Yes, an employer may apply the payroll tax exemption to wages paid to a rehired employee who is otherwise a qualified employee. http://www.irs.gov/businesses/small/article/0,,id=220749,00.html |
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The government doesn't know, how should I know?
posted at 4/20/2010 4:45 AM EDT
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Posts: 562
First: 11/12/2009 Last: 9/14/2011 |
Missed the 60 day thing. I was thinking that an employer could not lay off an employee and then immediately rehire someone else to get the tax credit. I wouldn't put it past jeanneb's management to actually try something like that. |
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