Paycom's System Helps Employers Claim HIRE Act Tax Credits

Online, March 22, 2010 (Newswire.com) - Oklahoma City, March 22, 2010 - The newly passed Hiring Incentives to Restore Employment (HIRE) Act provides employers tax incentives to hire and retain unemployed workers. For workers who meet the eligibility requirements, employers would be exempt from paying the employer share of 2010 Social Security taxes. Paycom's system makes it easy for businesses to track qualified employees and when selected, Paycom automatically reduces the employer's Social Security portion to $0 for 2010.

Paycom also tracks the maximum tax break to be received which is $6,621 per employee, or 6.2% of total wages paid in 2010 up to the $106,800 FICA wage cap. "Paycom makes it very easy for clients to take advantage of this new legislation," said Paycom's VP of Operations Brad Richardson. "As we've tracked the evolution of this bill through the House and Senate our software developers have incorporated the necessary changes in our system to simplify the claiming of these credits. When the legislation passed, we were ready."

Employers can start claiming the payroll tax credit in the second quarter of 2010 and they can claim retroactive credits for employees who started after February 3rd on their second quarter 941.

In addition to the payroll tax credit, if a qualified individual is hired and retained for 52 consecutive weeks the employer is eligible to receive up to a $1,000 income tax credit.

Oklahoma City-based Paycom pioneered the Internet payroll market in 1998 as the first 100% online payroll provider. Now the largest exclusively online provider of full-service payroll in the U.S., Paycom serves customers in all 50 states from offices in Atlanta, Austin, Charlotte, Chicago, Dallas, Denver, Fort Worth, Houston, Irvine, Los Angeles, Phoenix, Tampa and Tulsa.