Question: What are Qualified Employees?
Under the provisions of the HIRE Act signed by President Obama in March, 2010, employers who hire qualified employees may receive a tax credit for the Social Security taxes for these workers in 2010. The term "qualified employees" is reserved for employees who meet these qualifications:
Answer:
- The employee must begin work after February 3, 2010, and before January 1, 2011
- The employee must certify that he or she has not been employed for more than 40 hours during the 60-day period ending on the date the employee begins employment with the new employer
- The employee is not employed to replace another employee unless the other employee left voluntarily or for cause, and
- The employee cannot be related to the employer. An employee is related to the employer if he or she is a child or a descent of a child, a sibling or step-sibling, a parent or ancestor of the parent, a step-parent, a niece or nephew, an aunt or uncle, or an in-law. An employee is also related to the employer if he or she is related to anyone who owns more than 50% of the company's outstanding stock or capital and profits interest or is a dependent of the employer.
