Federal Jobs Bill Contains Specific Employer Requirements

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Ceridian’s experts are ready to assist employers with all their tax credit and compliance needs, including new opportunities and requirements as defined in the U.S. Hiring Incentives to Restore Employment (HIRE) Act

Ceridian Corporation, a leading provider of managed human resource, employee benefits administration, tax filing, and payroll outsourcing solutions, announced today that Ceridian is ready to support the employer provisions contained in the recently passed HIRE Act, more commonly referred to as the jobs bill. The bill has been passed by both the House and the Senate and was signed into law by President Barack Obama on March 18, 2010. Ceridian has been monitoring the progress of the bill and has been providing customers with periodic updates about the new law's impact since the beginning of the year.

"Ceridian already has plans in place and will be ready to support the employer payroll provisions of the legislation within a few weeks after the Act becomes law," commented Web Hill, senior vice president and general manager of Ceridian Tax Services. Ceridian will be able to help its tax credit clients take advantage of the tax credit opportunities outlined in the Act, determining which opportunities will provide them with the best benefit. Additionally, Ceridian's ongoing payroll administration and tax filing capabilities will manage the details required to keep Ceridian's clients in compliance with the Act's provisions.

"Our tax experts are well-versed in the HIRE Act and will be providing customers with clear guidance on the initial-stage support of the Act and how they can use their Ceridian payroll system to take advantage of hiring incentives," concluded Web.

Some of the payroll-related highlights of the HIRE Act include:

  •     Social Security tax suspension for qualified employers at the rate of 6.2 percent (.062) up to the annual Social Security wage cap for 2010 of $106,800. This amounts to a maximum annual hiring incentive of $6,621.60 per employee ($106,800 x 6.2 percent).
  •     Qualifying employees must be hired after February 3, 2010, and before January 1, 2011.
  •     Qualifying employees must not have been employed for more than 40 hours of work over the most recent 60 days (ending on the employee's start date). Employers must get a signed affidavit from each employee as proof of compliance with this provision.
  •     The employer may not take the Social Security tax offset on employees hired to replace involuntarily terminated employees. Employees hired to replace employees terminated "for cause" will qualify.
  •     An additional tax credit of 6.2 percent of Social Security wages, not to exceed $1,000, for each qualifying employee retained for at least 52 weeks may be taken on the employer's business tax return.

Ceridian will be providing customers with further details about how employers can take advantage of, and remain compliant with, the new HIRE Act. Interested Ceridian customers will be receiving updates via Ceridian's Compliance Alerts, and via http://www.myceridian.com, Ceridian's customer Web portal. As more HIRE Act information becomes available the public may be able to find additional information on Ceridian's Web site at http://www.ceridian.com.

About Ceridian
Ceridian is a leading global business services company that provides reality-based KnowHow to take the guesswork out of impacting your organization's bottom line. From human resources and benefits to productivity and payroll services, we help organizations maximize their human, financial and technology resources. As a leader in payroll outsourcing, gift cards and corporate spending, we're the driving force in payment innovation. Whether we're partnering with you to save money, grow your business, enhance operations or minimize financial risks we provide the insights and solutions that ensure your success. For more information about Ceridian visit http://www.ceridian.com or call 800-729-7655.

This press release was distributed through PR Web by Human Resources Marketer (HR Marketer: http://www.HRmarketer.com) on behalf of the company listed above.

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Cary Griffith
Ceridian
952-853-7171
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