Revised Form 941 for HIRE Act Payroll Tax Exemption

May 18, 2010

On May 18, 2010, the IRS issued a revised Form 941, known as the Employer’s Quarterly Federal Tax Return. Most eligible employers can use Form 941 to claim the HIRE Act payroll tax exemption for hiring qualified employees after Feb. 3, 2010, and before Jan. 1, 2011. Form 941 and IR-2010-64, which announces the revised Form 941, are posted on the IRS website.

Form 941 is used to claim the payroll tax exemption for qualified employees for the second, third, and fourth quarters of 2010. The HIRE Act does not allow employers to claim the exemption for wages paid in the first quarter, but provides for a credit in the second quarter.

For more information on the HIRE Act payroll tax exemption see: IRS Issues HIRE Act Final Form W-11 and New Q&As; IRS Issues Revised Forms W-2 and W-3 for HIRE Act Changes; and IRS Issues Additional FAQs for HIRE Act.