Venison Little Smokie

By Edwin Gonzalez-Correa CPA

The March 18, 2010, President Obama signed the "Restore to Hiring Employment Incentive Act." This law, which includes Puerto Rico, is a tax relief employers who hire people who have been unemployed for a minimum period of 60 days. Eligible person employed on or after February 3, 2010. Among several issues addressed in this law, the most significant for employers is exempting them from payment of Social Security 6.2% (employer contributions) to December. In addition, $ 1.000 credit for employers who hire new employees for a minimum of one year. The contribution to Social Security is going to be doing the U.S. government, because the intention of the law is to reduce the use tax incentives to employers.

Therefore, the When hiring a staff for your business, should consider this tax benefit, since it could mean savings of up to 11% of salary. Take for example an employee who earns the minimum wage ($ 7.25) and work for about a year or 2.080 hours (40 hours per week x 52 weeks per year). This employee will accrue an annual salary of $ 15.080. The employer is obliged to contribute 6.2% of that employee's wages for social insurance concept. The law will exempt from the payment to the employer until December. In our example, the employee starts work in April 2010, so that the employer will save you $ 701.22 for this item. These are calculated follows:

$ 15,080.00 annual salary
6.2% Social Security
$ 934.96 employer contribution in the year

calculate the savings on social security for the remaining nine months of the year (April 2010 to December 2010), the follows: $ 934.96/12 months

x 9 months = $ 701.22

If in addition to this amount, we believe the credit of one thousand dollars, the benefit would raise $ 1,701.22. A year after being hired, the employer will save approximately 11.28% ($ 1,701.22 / $ 15.080). Indeed, to the extent that the employee has a salary greater the benefit will be reduced gradually.


is for this reason that if you hired an employee on or after February 3, 2010, should check whether you can take advantage of this benefit and if you plan to hire an employee not forget to take into account the tax benefit.

Compilations & Audits:

Act No. 164 of December 16, 2009, known as the General Corporation Law (the Law) in Article 15.01, requires that every corporation, except corporations not for profit and not capital stock with a turnover of not more than $ 3,000,000, to present a statement compiled by a Certified Public Accountant (CPA) to file the annual report of the corporation. If the volume is greater than $ 3,000,000, shall submit an audited by a CPA.

This law increases the audit requirement of $ 1 million to $ 3 million, but required to file a state corporation compiled all those whose turnover is less than $ 3 million.

is currently being evaluated in the legislature a number of actions of members of this body and others sent from the Fort to amend the Law Among these amendments is to eliminate the requirement compiled for those corporations with a turnover of less than $ 1 million with the intention of helping small merchant. So far there has amended the Act and therefore is still the requirement to comply with it.

As Certified Public Accountant, my advice to entrepreneurs with a turnover of less than $ 1 million, is to request an extension to the State Department. The expiration date of the report of corporation is April 15 and the extension plus 90 days, ie on 14 June 2010. The reason is that if these amendments are approved, and the intention is to be effective for reporting year 2009, this would save employers because they would have to incur the costs related to the compiled state. If the law is not amended, would still have time to hire a CPA to prepare the compiled state, for the extension due date would be June 14.

The information provided is for informational purposes and should not make a decision based on it without first checking with the law and / or a professional. If you have any questions regarding any of the topics discussed and / or other, feel free to contact me by email at edwin.gonzalezcorrea @ gmail.com or call 939.940.2784.