On March 18, 2010, the President signed into law H.R. 2847, carrying with it the Hiring Incentives to Restore Employment (HIRE) Act. This Act will provide employers with incentives to hire and retain employees. HIRE will exempt an employer from paying the employer portion of Social Security taxes (6.2%) for wages paid the remainder of the year on new hires who were unemployed for at least 60 days prior to being hired. If those workers stay on the payroll for at least a year, the employer would also get a $1,000 federal tax credit per employee. In order to qualify, companies will need to get and maintain signed affidavits from new hires confirming his/her unemployment status prior to being hired.


Payroll Tax Forgiveness For Hiring Unemployed Workers – Exempts employers from paying the employer share of Social Security employment taxes (6.2%) on wages paid between March 18, 2010 and December 31, 2010 to newly hired qualified unemployed workers. This can provide immediate “above-the-line” savings for companies. A “qualified unemployed worker” is a new hires who:

1. Begins employment with the employer after February 3, 2010 and before January 1, 2011;
2. Certifies by signed affidavit, under penalties of perjury, that he/she has not been employed for more than 40 hours during the 60-day period before his/her employment start date;
3. Was not hired to replace another employee unless the previous employee was separated from employment voluntarily or for cause; and
4. Is not an owner of the company or relative of the owner as defined under Section 51(i)(1) of the Internal Revenue Code.

Business Credit for Retention of Certain Newly Hired Individuals – Provides employers with a $1,000 federal tax credit for retaining “qualified unemployed workers.” The workers must be employed by the employer for a period of not less than 52 consecutive weeks, and their wages for such employment during the last 26 weeks of the period must equal at least 80% of the wages for the first 26 weeks of the period.

Any employer, other than a governmental entity or political subdivision. A qualified employer also includes non-profit organizations and public institutions of higher education.


Let Sumit Credits, LLC help you get started today by:

1. Future Hires – Implementing a process to secure signed affidavits for every qualified unemployed new hire; and
2. Prior Hires – Go back and identify and secure signed affidavits for qualified unemployed new hires since February 4, 2010.

We can help ease the administrative burden and ensure compliance with the documentation requirements of the Act. We offer two methods for identifying and securing signed affidavits for qualified new hires:

1. Electronic Screening – Through our website employees can quickly and securely attest to his/her employment status prior to being hired. We secure an electronic signature and maintain a valid electronically signed affidavit. Per the Electronic Signatures in Global and National Commerce Act (ESIGN), electronic records and signatures carry the same weight and legal effect as traditional paper documents and handwritten signatures.
2. Paper Screening – We can provide questionnaires to be completed by all new hires and returned to us in a postage paid pre-address envelopes. We will track and maintain qualified new hires and provide reports of qualified new hires.

For a nominal fee Sumit Credits, LLC offers the following services to help you start capturing your benefits IMMEDIATELY:

• Screening – Quickly implement a process to secure signed affidavits from qualified unemployed new hires, both those hired going forward and those hired since Feb. 3, 2010
• Reporting – Provide constant reporting of qualified hires so you can realize savings immediately and not wait until the end of each quarter
• Compliance – Sumit can track screening compliance so as to insure 100% of your new hires have completed the unemployment status questionnaire
• Documentation and Audit Support – Sumit will maintain valid auditable documentation, provide client with an electronic spreadsheet of qualified employees inclusive of electronic images of signed affidavits, and assist in responding to related audits

Sumit Credits, LLC also offers the following optional services in addition to those stated above:

• Tracking – Track and document those qualified unemployed new hires that meet the requires to generate the $1,000 tax credit
• Calculation & Forms – Calculate the appropriate credit amount and prepare the appropriate IRS credit form for inclusion in your federal tax return

P.O.Box 910 Watson, LA 70786 -- Phone:225.664.2160 Fax:225.612.6606 Sitemap