Human Resource & Labor News
www.agc.orgJune 15, 2010 / Issue No. 3-10
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On the Inside
Labor Relations
New Contract Clause and Posting Requirement for Federal Contractors
Court Upholds Large Arbitration Award for Unionís Breach of Most-Favored Nation Clause
Compliance & Enforcement
New Health Care Law Requires Accommodations for Nursing Mothers; May Pose Challenge for Construction Industry
IRS Asks Employers to Answer 401 (k) Questionnaire; Employers Should Proceed With Caution
DOL Updates Web-based Compliance Tool to Help Employers Understand and Comply with Laws
AGC Represents Contractors at Wage and Hour Division Stakeholder Forum
Number of Green-Zone Multiemployer Pension Plans Up From 2009 but Still Down From 2008
Hiring & Firing
IRS Releases Updated HIRE Act FAQs and Revised W-2 & W-3 Forms for Employers
Professional Development
Registration Open for HR Professionals Conference and Training and Development Conference
AGC Provides Training to Help Contractors Avoid Worker Misclassification Liability
Hiring & Firing
IRS Releases Updated HIRE Act FAQs and Revised W-2 & W-3 Forms for Employers

In response to the Hiring Incentives to Restore Employment (HIRE) Act, a new law created to encourage employers to hire workers who were previously unemployed for at least 60 days immediately prior to hiring, the Internal Revenue Service (IRS) has issued revised 2010 W-2 and W-3 forms, along with an updated list of frequently asked questions (FAQs) for employers.

The revised 2010 Form W-2, Wage and Tax Statement, now includes instructions for reporting exempt wages and tips for qualified employees under the HIRE Act.  Data from Form W-2 is then reported on the revised 2010 Form W-3, Transmittal of Wage and Tax Statements.  Detailed instructions for completing both forms can be found on the IRS website.

In addition to updating the forms, the IRS has also updated its list of HIRE Act FAQs for employers, with example scenarios.  The FAQs define qualified employers, qualified employees, and answers questions on claiming the payroll exemption.  One clarification given to employers in the FAQs is that the payroll tax exemption is based on when wages are paid to the employee, not earned.  For example, if a qualified employee was paid on March 19, 2010, the wages for that two-week period would qualify for the payroll tax exemption.  This is the case even though the payroll tax exemption only applies to wages paid after March 18, 2010, the date of enactment, and before January 1, 2011.  The FAQs also confirm that there is a deadline for the employer to obtain the signed affidavit (Form W-11) from the employee.  The employer must receive the signed affidavit before the company files an employment tax return applying the payroll tax exemption. 

For more information on the HIRE Act, including an explanation of the tax holiday and additional business tax credit available to employers and the forms and requirements necessary to claim the credits, read AGC's article, "Tax Incentives Expected to Encourage Hiring; Seasonal Hires Qualify."
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