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Microsoft Dynamics SL (Archived)

Issue with the 941 tax compliance in Hire Act Update for SL?

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Posted on by 25

Issue 1: 

Employee hires 3/1, pays 3/15+3/22. No W-11 received, has worked 40 hrs in prior 60 days, Terminates 4/1, last wages paid 4/3. Same employee rehired 6/15 & submits W-11, paid 6/22+6/29. 

So what you have are Hire Act eligibile wages as follows: No for 1stQtr look back. No for 4/3  paycheck. Yes for 6/22+6/29 paychecks.

Issue 2:

Employee hires 4/1, pays 4/7+4/14. W-11 is received, has not worked 40 hours in prior 60 days, Terminates 5/1, last wages paid 5/1. Same employee rehired 6/1. W-11 is not received because employee worked 40 hours between 5/2-5/31. Paid 6/7, 6/14.

So what you have are Hire Act eligibile wages as follows: No for 1stQtr look back. Yes for 4/7+4/14+5/1  paychecks. No for 6/7+6/14 paychecks.

As far as I can see, there is no apparent way to capture the 941 data properly in SL. The on/off box in employee maintenance does not seem in-depth enough to deal with re-hire issues.

Am I missing something here?

 

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  • Lisa Webb Profile Picture
    25 on at
    I wanted to add a comment on this, having just spent forever on the phone with the IRS. What I was told is that basically I am right in my read in the above examples on Hire Act eligibility.

    They said that each hire event should be treated uniquely & requires a new W-11 (if supplied by the employee).  The employer then determines eligibility based on when the wages were paid in correlation to the “first employment” date on the W-11 form. It’s a case of w-y-s-i-w-y-g.  I also asked about the “no more than 40 hours in 60 days” as it relates to re-hires.  I was told the rule applies to any employer including you.

  • Suggested answer
    RedStorm Profile Picture
    1,366 on at

    FYI.  As you may know by now, MS came up with an update that allowed you to mark certain paychecks as HIRE ACT checks and others as NOT HIRE ACT checks.  See HIRE ACT UPDATE that they made available in Q4, 2010.

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