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We are hiring someone who says he did contract work and wasn't sure if that disqualified him as an eligible employee for the payroll credit. If he was self-employed doing work as an IC and worked more
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HIRE ACT

posted at 7/13/2010 10:15 AM EDT
Posts: 94
First: 2/7/2008
Last: 3/21/2011
We are hiring someone who says he did contract work and wasn't sure if that disqualified him as an eligible employee for the payroll credit. If he was self-employed doing work as an IC and worked more than 40 hours doing that within the last 60 days, does this disqualify him? I've looked around including at the IRS site and the FAQs here: http://www.irs.gov/businesses/small/article/0 ,,id=220749,00.html to no avail. Can anyone help?

HIRE ACT

posted at 7/13/2010 11:08 AM EDT
Posts: 29
First: 6/9/2009
Last: 4/26/2011
At the top of IRS form W-11 it states, 'I certify that I have been unemployed or have not worked for anyone for more than 40 hours during the 60-day period ending on the
date I began employment with this employer.'

Kind of clear that contract work includes work for 'anyone.'

Maybe other commentors will see it differently or research a better answer.

HIRE ACT

posted at 7/14/2010 5:07 PM EDT
Posts: 94
First: 2/7/2008
Last: 3/21/2011
Yes I too can read. I'm not sure if you meant to come off so snarky which is how it sounded to me.

I wasn't sure if being self employed was considered as working for someone or being employed. Probably so, but I would like to see if anyone else has an opinion on this.

My reasoning is that it is possible that the drafter of the W-11 not wanting to duplicate words, might have chosen to use "have not worked for anyone" rather than "have not been employed" for more than 40 hours during the 60-day period ending on the date I began employment with this employer" having just written "I certify that I have been unemployed."

If the intent was to find out if someone was employed for that duration during that period, would self-employment be considered being employed? That is what I was driving at.

HIRE ACT

posted at 7/15/2010 4:36 AM EDT
Posts: 2146
First: 2/15/2006
Last: 9/14/2011
It is my understanding that being self-employed would be considered employment and that person would not be eligible under HIRE. Even though they were working for themselves.

Whether the IRS would catch it or not is another issue. Personally I would not claim this employee. But I suspect there will be a lot of companies that do.

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