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<div class=Section1>
<p class=MsoNormal>May 12, 2010<o:p></o:p></p>
<p class=MsoNormal><o:p> </o:p></p>
<p class=MsoNormal>To: All
Departments<o:p></o:p></p>
<p class=MsoNormal>Re: Payroll
Office<o:p></o:p></p>
<p class=MsoNormal>Re: Hiring
Incentives to Restore Employment (HIRE) Act <br>
------------------------------------------------------------------------<o:p></o:p></p>
<p class=MsoNormal><o:p> </o:p></p>
<p class=MsoNormal style='margin-left:.5in;text-indent:-.5in;mso-list:l1 level1 lfo1'><![if !supportLists]><span
style='mso-list:Ignore'>I.<span style='font:7.0pt "Times New Roman"'>
</span></span><![endif]><u>Background<o:p></o:p></u></p>
<p class=MsoNormal><o:p> </o:p></p>
<p class=MsoNormal style='margin-left:27.0pt'>The HIRE Act, P.L. 111-147,
(“Hiring Incentives to Restore Employment”) was enacted into
federal law on March 18, 2010. It provides that a qualified employer may claim
a payroll tax exemption from the employer 6.2% share of social security tax on
wages paid to qualified employees from March 19, 2010 through December 31,
2010. <o:p></o:p></p>
<p class=MsoNormal style='margin-left:27.0pt'><o:p> </o:p></p>
<p class=MsoNormal style='margin-left:27.0pt'>The employee’s share of
social security tax (6.2%) and both the employee and employer share of Medicare
tax are still due and payable.<o:p></o:p></p>
<p class=MsoNormal style='margin-left:27.0pt'><o:p> </o:p></p>
<p class=MsoNormal style='margin-left:.5in;text-indent:-.5in;mso-list:l1 level1 lfo1'><![if !supportLists]><span
style='mso-list:Ignore'>II.<span style='font:7.0pt "Times New Roman"'>
</span></span><![endif]><u>Qualified Employee:<o:p></o:p></u></p>
<p class=MsoNormal><u><o:p><span style='text-decoration:none'> </span></o:p></u></p>
<p class=MsoNormal style='margin-left:45.0pt;text-indent:-.25in;mso-list:l1 level2 lfo1'><![if !supportLists]><span
style='mso-list:Ignore'>A.<span style='font:7.0pt "Times New Roman"'>
</span></span><![endif]><u>Mandatory Requirements:<o:p></o:p></u></p>
<p class=MsoNormal style='margin-left:27.0pt'><u><o:p><span style='text-decoration:
none'> </span></o:p></u></p>
<p class=MsoNormal style='margin-left:85.5pt;text-indent:-.25in;mso-list:l2 level1 lfo2'><![if !supportLists]><span
style='mso-list:Ignore'>1.<span style='font:7.0pt "Times New Roman"'>
</span></span><![endif]>The individual must begin employment between February
4, 2010 and December 31, 2010, inclusive. <o:p></o:p></p>
<p class=MsoNormal style='margin-left:45.0pt'><o:p> </o:p></p>
<p class=MsoNormal style='margin-left:85.5pt;text-indent:-.25in;mso-list:l2 level1 lfo2'><![if !supportLists]><span
style='mso-list:Ignore'>2.<span style='font:7.0pt "Times New Roman"'>
</span></span><![endif]>The individual must certify by a signed affidavit,
under penalty of perjury, that he/she has not been employed more than 40 hours
during the 60-day period ending on the date that employment starts. <o:p></o:p></p>
<p class=MsoListParagraph style='margin-left:9.0pt'><o:p> </o:p></p>
<p class=MsoNormal style='margin-left:117.0pt;text-indent:-.25in;mso-list:l2 level2 lfo2'><![if !supportLists]><span
style='mso-list:Ignore'>a.<span style='font:7.0pt "Times New Roman"'>
</span></span><![endif]>The IRS has issued a FINAL Form W-11 that is available
through the Payroll Office’s website at: <a
href="http://www.accounting.ucr.edu/newhireforms.htm">http://www.accounting.ucr.edu/newhireforms.htm</a>.
<br>
<o:p></o:p></p>
<p class=MsoNormal style='margin-left:85.5pt;text-indent:-.25in;mso-list:l2 level1 lfo2'><![if !supportLists]><span
style='mso-list:Ignore'>3.<span style='font:7.0pt "Times New Roman"'>
</span></span><![endif]>The 60 day period must be continuous and can span
2009-2010.<o:p></o:p></p>
<p class=MsoListParagraph style='margin-left:9.0pt'><o:p> </o:p></p>
<p class=MsoNormal style='margin-left:45.0pt;text-indent:-.25in;mso-list:l1 level2 lfo1'><![if !supportLists]><span
style='mso-list:Ignore'>B.<span style='font:7.0pt "Times New Roman"'>
</span></span><![endif]><u>IRS Guidance</u>:<o:p></o:p></p>
<p class=MsoNormal><o:p> </o:p></p>
<p class=MsoNormal style='margin-left:1.25in;text-indent:-.25in;mso-list:l1 level3 lfo1'><![if !supportLists]><span
style='mso-list:Ignore'>1.<span style='font:7.0pt "Times New Roman"'>
</span></span><![endif]>The individual may be a recent graduate who has been in
school for some or all of the 60 days preceding the start of his employment.<o:p></o:p></p>
<p class=MsoNormal style='margin-left:1.25in'><o:p> </o:p></p>
<p class=MsoNormal style='margin-left:1.25in;text-indent:-.25in;mso-list:l1 level3 lfo1'><![if !supportLists]><span
style='mso-list:Ignore'>2.<span style='font:7.0pt "Times New Roman"'>
</span></span><![endif]>May be a rehired employee who is otherwise a qualified
employee.<o:p></o:p></p>
<p class=MsoNormal><o:p> </o:p></p>
<p class=MsoNormal style='margin-left:1.25in;text-indent:-.25in;mso-list:l1 level3 lfo1'><![if !supportLists]><span
style='mso-list:Ignore'>3.<span style='font:7.0pt "Times New Roman"'>
</span></span><![endif]>Does not apply to someone who is hired to replace an
existing worker, unless the existing worker terminated employment voluntarily
or was terminated for cause.<o:p></o:p></p>
<p class=MsoNormal style='margin-left:1.25in'><o:p> </o:p></p>
<p class=MsoNormal style='margin-left:1.25in;text-indent:-.25in;mso-list:l1 level3 lfo1'><![if !supportLists]><span
style='mso-list:Ignore'>4.<span style='font:7.0pt "Times New Roman"'>
</span></span><![endif]>There is no minimum number of hours that the qualified
individual must work, but the individual must be subject to social security tax
and have social security tax withheld.<o:p></o:p></p>
<p class=MsoNormal><o:p> </o:p></p>
<p class=MsoNormal style='margin-left:.5in;text-indent:-.5in;mso-list:l1 level1 lfo1'><![if !supportLists]><span
style='mso-list:Ignore'>III.<span style='font:7.0pt "Times New Roman"'>
</span></span><![endif]><u>Qualifying Wages<o:p></o:p></u></p>
<p class=MsoNormal style='margin-left:27.0pt'><u><o:p><span style='text-decoration:
none'> </span></o:p></u></p>
<p class=MsoNormal style='margin-left:45.0pt;text-indent:-.25in;mso-list:l1 level2 lfo1'><![if !supportLists]><span
style='mso-list:Ignore'>A.<span style='font:7.0pt "Times New Roman"'>
</span></span><![endif]>Wages paid to Qualified Employees with pay dates
beginning March 19, 2010 through December 31, 2010: <o:p></o:p></p>
<p class=MsoNormal style='margin-left:45.0pt'><o:p> </o:p></p>
<p class=MsoNormal style='margin-left:45.0pt;text-indent:-.25in;mso-list:l1 level2 lfo1'><![if !supportLists]><span
style='mso-list:Ignore'>B.<span style='font:7.0pt "Times New Roman"'>
</span></span><![endif]>The first eligible pay date which could include
qualified employees is April 1, 2010.<o:p></o:p></p>
<p class=MsoNormal><o:p> </o:p></p>
<p class=MsoNormal style='margin-left:.5in;text-indent:-.5in;mso-list:l1 level1 lfo1'><![if !supportLists]><span
style='mso-list:Ignore'>IV.<span style='font:7.0pt "Times New Roman"'>
</span></span><![endif]><u>Campus Procedure<o:p></o:p></u></p>
<p class=MsoNormal style='margin-left:.5in'><u><o:p><span style='text-decoration:
none'> </span></o:p></u></p>
<p class=MsoNormal style='margin-left:45.0pt;text-indent:-.25in;mso-list:l0 level1 lfo3'><![if !supportLists]><span
style='mso-list:Ignore'>A.<span style='font:7.0pt "Times New Roman"'>
</span></span><![endif]>Please ask every new employee from March 19, 2010 through
December 31, 2010 to complete and sign form W-11 if he/she meets the criteria
described on section II. Please send the approved form W-11 to the campus
Payroll office and retain a copy for your records. <o:p></o:p></p>
<p class=MsoNormal><o:p> </o:p></p>
<p class=MsoNormal style='margin-left:45.0pt;text-indent:-.25in;mso-list:l0 level1 lfo3'><![if !supportLists]><span
style='mso-list:Ignore'>B.<span style='font:7.0pt "Times New Roman"'>
</span></span><![endif]>Upon receipt of a completed and signed form W-11, the
Payroll Office will review, enter and update PPS. The qualifying employee
will be flagged appropriately in the PPS system and reports will print on a
quarterly basis. Changes to PPS to accommodate the 2010 Form W-2 will be
made later in the year.<o:p></o:p></p>
<p class=MsoNormal><o:p> </o:p></p>
<p class=MsoNormal style='margin-left:45.0pt;text-indent:-.25in;mso-list:l0 level1 lfo3'><![if !supportLists]><span
style='mso-list:Ignore'>C.<span style='font:7.0pt "Times New Roman"'>
</span></span><![endif]>A journal entry crediting back the department for the
employer portion of the OASDI for qualified employees will be made in the month
following the end of each quarter. The quarterly report will include
sufficient information to prepare the journals, such as the FAUs and percent
charged to each. <o:p></o:p></p>
<p class=MsoNormal><o:p> </o:p></p>
<p class=MsoNormal>This information is also available at: <a
href="http://www.accounting.ucr.edu/documents/federalhireact.pdf">http://www.accounting.ucr.edu/documents/federalhireact.pdf</a>.
Please contact me at <a href="mailto:gabe.nwandu@ucr.edu">gabe.nwandu@ucr.edu</a>
if you have any questions.<br>
<br>
Thank you<o:p></o:p></p>
<p class=MsoNormal>------------------------<o:p></o:p></p>
<p class=MsoNormal>Gabe Nwandu MBA, CPA;<br>
Director - Payroll, Disbursements & Travel<o:p></o:p></p>
<p class=MsoNormal>UC Riverside, Accounting Services Department, Riverside, CA
92521<o:p></o:p></p>
<p class=MsoNormal>Tel: 951-827-1956; Fax: 951-827-3314; <o:p></o:p></p>
<p class=MsoNormal>E-mail: gabe.nwandu@ucr.edu; Internet:
accounting.ucr.edu<o:p></o:p></p>
<p class=MsoNormal><o:p> </o:p></p>
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