Tax Tip - Employee Retention Credit

Employers are reminded they may be eligible for an up-to $1,000 credit for retaining certain workers hired after February 3, 2010 and before January 1, 2011.  A “retained worker” is a “qualified employee” who was employed by you  for a period of at least 52 consecutive weeks and whose wages are earned relatively evenly throughout the 52 weeks of employment (last ½ of the year must be equal to at least 80% of the wages earned during the first half of the year). 

Qualified employees in addition to meeting the initial hiring timeline discussed above are those that sign Form W-11 (certifying they have been out of work for at least 60 days prior to starting working for you), is not being employed by you to replace another employee unless the other employee separated from employment voluntarily or for cause, and is not related to you.