There's some new tax forms in town, and we have HIRE to thank for it.
On March 18, President Obama signed the Hiring Incentives to Restore Employment (HIRE) Act into law. HIRE provides tax incentives for businesses that hire unemployed workers.
The Internal Revenue Service has now issued new W-2 and W-3 forms and instructions based on the new HIRE provisions.
Box 12 on the W-2 now has a new code for companies to record the amount of compensation covered by the payroll tax exemptions under HIRE (Code CC). The total of compensation reported under Code CC is then recorded on the revised W-3 in the new Box 12b. The "total deferred compensation" previously reported Box 12 is now entered in Box 12a.
