Hiring formerly self-employed workers won’t nix a 2010 payroll tax break.
Employers can claim the Social Security tax exemption for them, IRS says, as long as they haven’t worked as an employee for over 40 hours in the past 60 days. If they were self-employed during that period, the credit can be claimed on their pay. The 6.2% payroll tax exemption is available for wages paid after March 18, 2010 and before 2011 to qualifying employees who were hired after Feb. 3 2010.
Laid off workers who are rehired are eligible if they meet the 40-hour test.
So are minors. Although they’re under age 18, they can sign form W-11 to certify that they haven’t worked more than 40 hours in the previous 60 days.