How to comply with the HIRE Act and update the 941 Form

As of 3/18/10, employers are eligible for two new tax benefits after hiring previously unemployed or part time workers. These tax benefits are part of the HIRE Act. For more information, see the links below.

Possible Resolution:

  1. For employees that are eligible under the HIRE Act, create an earnings code that is not subject to the tax. For more information, see How to set up Earnings Codes in Sage MAS 90 and 200
  2. Install the 2010 2nd Quarter Payroll Changes update.
  3. Rename the following files in the ..MAS90Reports###-### & ###-xxx (xxx = company code) directories:
    Note: Do not rename the files in the ..Reports directory.

    • PR941A.rpt
    • PR941P.rpt
    • PRSCHB.rpt
    • PRSCHP.rpt
  4. Expand Payroll, Setup, and click Payroll Options. Select the Implement Qualified Employee Reporting check box, and then click Accept.
  5. Expand Payroll, Main, and click Employee Maintenance.
  6. Click the Main tab, select the Qualified (Form W-11) check box for all applicable employees.
  7. Expand PayrollPeriod End, and click Quarterly 941 Form Printing.

    • If an exempt earnings code was used, the Fractions of Cents filed may need to be adjusted.
    • If an non-exempt earnings code was used, the liabilities must be adjusted using PRZDRR to match line 10 to line 17 of the 941. For more information, see How to make changes to the 941 Quarterly Tax Report
  8. If you have any qualified employees, click the Qualified Employee button.
  9. Verify the amounts are correct for line 6b and 6c, and manually enter the amounts for line 12c and 12d.
  10. Click the Accept button.
  11. Click the Print or Preview button.