A new law lets employers avoid the 6.2% share of Social Security tax on wages paid to new hires who certify they worked fewer then 40 hours in the prior 60 days. That even includes students who didn’t work because they were taking classes. The payroll-tax exemption is available for compensation paid after March 18^th, 2010 and before January 1, 2011 to employees hired on or after February 4, 2010.

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The information presented is general in nature and should not be considered legal or tax advice. You should consult your legal or tax advisor for information concerning your own specific tax situation.