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Job Creation Deduction

Posted by Suzi Posted on Oct 02 2013

In order to qualify for the additional deduction, the employer must have increased the number of ?full-time equivalent? employees during the year.  In other words, employers must have created new jobs, not just replaced workers of existing positions.  In order to be considered a ?full-time equivalent? employee, the employee must reside in Wisconsin and be required to work at least 2080 hours per year.  This deduction is only available to regular, non seasonal jobs.  The number of ?full-time equivalent? employees is determined based on the average employee count from your quarterly unemployment reports. 

If you qualify for this deduction, it is possible to have a $2,000-$4,000 maximum deduction per additional employee added during the year.  If you have any questions or believe you could qualify for the credit, contact us for additional information.

In preparation for the upcoming year-end, we would like to remind you to make sure you have a form W-9 on file for all your vendors that will receive a 1099?s from you this year.  This form will ensure you have the following information needed for us to prepare their 1099: payee legal name, identification number [Federal Identification Number (EIN) or Social Security Number (TIN)], and their complete mailing address.  You are required to file a 1099-MISC if, in a calendar year, you made payments of $600.00 or more to an individual, partnership, LLC or attorney(s) (regardless of entity classification), for services, rents or subcontracting services.

Also, if we prepare your payroll, please verify that we have their correct name, social security number and mailing address, so we have accurate information when preparing their W-2?s for 2012. Keep in mind that bonus pay is considered compensation and must be included in payroll calculations, for W-2 reporting purposes.