Do you have a foreign financial account?

If you own or have authority over a foreign financial account including bank, securities, or other types of financial accounts, in a foreign country, and if the aggregate value of these accounts exceeds $10,000 at any time during the year, then you are required to report that information to the Department of Treasury, by filing Form TD F 90-22.1.

This form is due on or before June 30 each year (following the year you are reporting on) and is NOT to be filed with your Federal income tax return. There is NO extension of time to file this report.

Failure to file this informational return can result in fines of up to $500,000 and up to 5 years imprisonment. Individuals and organizations that meet the requirements are required to file.

The form is pretty easy though given the potential fines and jail time for not filing, is not one you want to miss.

Tax Cheats

Cheating on taxes is illegal. Tax avoidance is okay, tax evasion isn't.

Tax evasion is incredibly stupid as there are so many ways to get caught. As a CPA with former tax auditing experience, trust me when I tell you there are many, many, many ways to be caught.

And one thing to remember about an IRS audit is this: Unlike a court of law where you are innocent until proven guilty, when the IRS comes knocking, with them you are guilty until you can prove yourself innocent.

Another thing to keep in mind is that there is no statute of limitations on tax evasion. Failure to report wages or hiding income could come back to bite someone years and years later.

When caught, tax cheats face substantial penalties, interest on the unpaid tax, embarrassment, criminal charges, and potential jail time.

I was recently speaking with two people when one admitted to being paid under the table to tutor children, and the other admitted to hiring household help (landscapers, babysitters, and house cleaners) without checking their authority to legally work in the United States or properly dealing with employer reporting and taxation issues.

Every tax cheat I have ever known has their self-serving reasons for cheating. Both these women tried to justify their actions though their excuses amounted to little more than "I don't want to pay more taxes."

"The subject of every State ought to contribute towards the support of the government, as nearly as possible, in proportion to their respective abilities; that is, in proportion to the revenue which they respectively enjoy under the protection of the State." ~ Adam Smith (1776)

I don't know anyone who wants to pay more tax although this is the way we fund our government and the many services it provides us. Though as Adam Smith pointed out, we all ought to pay our share according to our incomes and people who cheat to avoid this public responsibility, hurt the rest of us who do our civic duty.

Small Business Health Insurance Credit

If you saw President Obama give last week's State of the Union speech, you would have heard him mention how Jim Houser, Co-owner of Hawthorne Auto Clinic, would be getting a $5,000 tax credit to help his small business provide health insurance to his employees under the new Patient Protection and Affordable Care Act.

Jim and the Hawthorne Auto Clinic are customers of ours and we computed the tax savings for him that the President used in his speech. Jim was in the balcony for the speech and I'm both proud of him for his activism and leadership that got him there, and I'm proud of TriLibrium for being just one step removed from the White House.

The tax credit is available to certain small business with tax years beginning in 2010, for those that provide health insurance coverage to their employees. It is also available to certain non-profits and even household employers.

The rules are too complex to go into here but the IRS has a frequently asked questions page that should answer many of your questions. I suggest you start their and then speak with your CPA to find out how you can benefit from this legislation.

1099s

Who do you need to send a 1099 to?

The following list covers the majority of circumstances that require businesses to issue a 1099-Misc to an individual or business and the situations where 1099s are not required. Let’s start with a list of excluded transactions.

Excluded transactions include:

• Most payments to corporations (see exceptions below)
• Payments for merchandise
• Payments of rent to real-estate agents or corporations
• Business travel allowances paid to employees
• Wages paid to W-2 employees
• Payments to tax-exempt organizations

1099s are required for:

• Payment for services in excess of $600 paid during the year
• Rent payments exceeding $600 paid to individuals or businesses which are not incorporated
• Any fishing boat proceeds
• Medical and healthcare payments in excess of $600, including payments to a corporation
• Cash payments for fish (or other aquatic life) in excess of $600, including payment to a corporation
• Royalties or broker payments in excess of $10
• Gross proceeds to an attorney in excess of $600, including any law practices that are incorporated

When are they due?

Copy B and Copy 2 of Form 1099-MISC must be sent to the recipient by February 1st, 2011. The due date is extended to February 16, 2011, if you are reporting payments in boxes 8 or 14. File Copy A of the 1099-MISC with the IRS by March 1st (Extended to March 31st if you file electronically).

What are the penalties for non-compliance?

Failure to furnish correct payee statements can have large consequences. Fines start at $30 per information return if you correctly file within 30 days of the due date; $60 per return if more than 30 days late but before August 1; $100 per return after August 1 or if you don't file. Intentional disregard of the requirements raises the fine to $250 per return.

Additionally, failure to file may also put your deductions at risk.

Solutions

Something is wrong with our system.

Last night I got the privilege to listen to Van Jones speak here in Portland. It was an SRO crowd which was amazing given that his speech was at the exact same time as the State of the Union address by President Obama.

I arrived early and sat next to a black man about my same age. His name was Craig and we had a super conversation waiting for the program to start. Craig had come to hear Van talk about green jobs as he was desperately looking for work. Here was an American who wanted to contribute and yet, couldn't find any paid work.

Craig's pain was palpable. His pain is no different than millions and millions of other Americans, from every corner of our country.

Everywhere I look I see needs.

Our infrastructure is failing. Our bridges desperately need repair. Many here in Oregon won't withstand the next major earthquake we all know is coming. Our Sellwood Bridge has been closed to bus traffic for years and rates a 2 out of 100 possible points for structural integrity. You think we might be better off fixing it?

Schools, everywhere except newer suburban schools, are in need of significant improvements and upgrades. My daughter attends a Portland HS that is nearly 100 years old.

I'm guessing that more than 80 percent of our housing would benefit from energy efficiency improvements that would save money in the long run. We could put a million people to work within the next 12 months weatherizing homes using a revenue neutral model that is win/win/win for all.

We need more teachers and smaller class sizes. We need more opportunities for our youth and less prisons (American prisons now hold 1/4th of the world's prison population. Does that seem right in the Land of the Free?)

We need more caregivers and support for the caregivers we have.

We need programs for our returning veterans who come home from service with too few opportunities and too little support.

At the same time, everywhere I look I see people who need jobs and want to help.

It is a failure of our system and our imagination that we can't put these two needs together.

We are not some third world country without resources and imagination. We can fix this problem.

Jobs, Jobs, Jobs

Our culture has a strange obsession with work. I've written about this from a number of angles including our Culture of Insatiability, how a shorter work week would benefit us all , and the impact of this job preoccupation.

Daniel Quinn, one of my favorite authors, wrote Work, Work, Work, a children's book that follows a mole that spends his days digging. From sun up to sun down the mole digs holes, without any thought as to why he spends his life digging nor any appreciation of the fantastic world around him. All he cares about is his work - digging holes.

I bring this up since I was reading this morning's headline that the Tea Partiers would be looking at defense spending cuts as part of their deficit reduction plan. Clicking through to the story, I knew the article would mention the "jobs" trump card. (Our societal trump cards seem to be safety, security, children, and jobs. Just pull those into any discussion and they trump every other consideration.)

And there it was, in the second paragraph of the story:

"Cutting defense and canceling weapons could mean deep spending reductions and high marks from tea partiers as the nation wrestles with a $1.3 trillion deficit. Yet it also could jeopardize thousands of jobs when unemployment is running high."

These marginal defense jobs provide little societal value since we can't eat, wear or beneficially use the output. We'd be better off paying these displaced workers to do community volunteer work which would leave them gainfully employed, with income to spend, creating societal benefits that would be palpable.

If a job is a job is a job, why not pay these folks to dig holes? I suspect most people would see this as a waste of government resources and yet what about the hole digging jobs we'd lose as a result?

In the end, we all need to contribute to our society and there are many ways to do this beyond paid remuneration.

I hope you'll consider these ideas whenever you hear the "Jobs" trump card pulled out in a debate or discussion.

Values = Marketing

We've been in business a little over two years and have spent relatively small amounts on traditional marketing and advertising. Yet we are growing rapidly and are currently expanding our office.

How so?

We let our values lead. Of course, we do excellent work and have a compelling value proposition but like an ante, those are required to play. We are trying to move beyond that.

In our office expansion we've taken the following steps to walk our triple bottom line talk:

• We made sure we had a construction bid from a minority contractor (didn't win but that is business, at least we made the effort to reach out and be inclusive).
• We purchased Steelcase Think chairs made out of nearly 40% recycled materials and with Cradle-to-Cradle design, are over 90 percent recyclable at the end of their lives.
  
• We had made a custom built receptionist station built from locally sourced reclaimed wood, designed by a Meld-Design, a customer of ours.
• We had custom round meeting tables built from locally sourced reclaimed wood and designed by Endurawood, another customer of ours.
• Endurawood is also building us end tables and a coffee service table for our reception area, again from locally sourced reclaimed wood.

While we probably spent 10-20 percent more than we might have had we gone CHEAP and only considered short term costs, I believe these are great long-term investments due to the longevity and craftsmanship of the furniture, the comfort and pride my employees and customers have sitting in excellent chairs while meeting over handcrafted furniture, and the "marketing" story we have communicating our values to our target market.

Richard Seireeni coined the term the "Gort Cloud" which helps describe the network I feel we've tapped into.

Perhaps you could redirect your marketing and advertising budget towards authentic messages about who you are?

Hiring

We just hired a new office manager at TriLibrium. We had one position and over 200 applicants. Given the economy and the time of the year, I wish I could hire them all.

I want to share with you some of the ways we brought our triple bottom line values to this process.

First, we did an EEOC hiring by widely announcing the position. We advertised on Craigslist, with the State of Oregon Employment Division, and on the Portland Green Drinks, B-Corp, and BGI websites. We also posted this on our company's Facebook page and tweeted it as well.

We used a very sophisticated, objective process that used an assessment tool, somewhat akin to Myers-Briggs, to help us identify the type of candidate we were looking for. Each applicant was given an opportunity to take the 5-10 minute online assessment and received a very detailed report about themselves as a result.

As opposed to sifting through 200+ resumes, we only looked at the resumes of the dozen people whose assessment score matched our profile and eight of these people were invited in for an initial 45-minute interview. (Please contact me directly if you'd like to speak with me about our process).

Upon meeting these eight candidates, I was amazed at how well the assessment tool helped us identify people who would be perfect for the position we identified. Most, if not all of these would not have been selected for interviews had we simply relied on their resume.

After the initial meeting, each candidate was invited back for a second, 90-minute interview. Each team member at TriLibrium was given an equal opportunity to interview and provide input in the selection process. It was OUR decision, not just MINE, and I know this openness leads to better buy in and decision making.

To eliminate bias, we used a weighted decision matrix with each team member voting. This process really helped us with our final decision as we struggled to decide between the top two candidates. Without this objective process, we might not have reached the same decision.

Finally, we sent a note of appreciation to each person who applied, took the assessment, and/or interviewed. This just seems like the decent thing to do and I got at least ten sincere emails and cards, from applicants, thanking me for letting them know they wouldn't be selected. It seems fewer companies are doing this anymore so the applicants send off resumes never to hear another word. I think this small gesture may end up leading to new customers as more and more people learn about us and the triple bottom line values that make us unique.

Non-Business Energy Tax Credit

Time is running out to take advantage of energy saving investments in your principle residence. The Non-business Energy Property Tax Credit was increased as part of the American Recovery and Reinvestment Act of 2009. I've written about these before (and here)but wanted to bring them to your attention once again as they are set to expire at year end.

First, to qualify, the improvements must be placed in service before January 1, 2011.

Here are some of the important facts to keep in mind:

• The law increased the credit rate to 30 percent of the cost of all qualifying improvements and raised the credit limit to $1,500 total for 2009 and 2010 combined
• The credit applies to improvements in insulation, energy-efficient windows, and energy-efficient heating and air conditioning systems.
• For purposes of the credit, to qualify as "energy efficient", the product must generally meet certain standards. If you have questions, make sure you make the determination before you purchase the product to make sure you qualify.
• Manufacturers must certify that their products meet the standards and must provide a written statement to the taxpayer, either with the product or on their website.
• The improvements must be made to your principle residence located in the United States. A second home or rental property would not qualify for the particular credit.
• You must claim the credit on the tax return for the year that the improvements were made.

Oregon residents should also determine if their investment would qualify for the Oregon Residential Energy Tax Credit (RETC). Oregon residents might also qualify for special incentives from the Energy Trust of Oregon.

You should also check the Database for State Incentive for Renewables & Efficiency to what other local incentives might be available around the country.

Small Business Jobs and Tax Relief Bill

President Obama signed the Small Business Jobs Act of 2010 (HR 5297) yesterday.

The Act expands loan programs through the SBA, strengthens small business preference programs for federal government projects, provides export incentives, and offers a variety of small business tax breaks. Many of the provisions are effective immediately.

These changes are in effect for 2010 and provide some great tax planning opportunities:

• Increased section 179 expensing
• Extension of 50% first-year bonus depreciation
• Zero capital gain tax rate from IRC Sec. 1202 small business stock
• Increased IRC Sec. 195 deduction for business startup expenses
• Five-year carryback of general business credits
• New deduction for self employed health insurance costs on the Schedule C
• Removal of cell phones from the definition of listed property

You can read more details in this Journal of Accountancy article on the House Bill.

Biking to Work

This month is the bike to work commuter challenge sponsored by the Bicycle Transportation Alliance. Today was the first day of the challenge and I started by riding 5 miles to Toastmasters for a 7am meeting and then 2.2 miles back into work. I feel good and can't wait to see the physical results of commuting by bike every day this month.

Team TriLibrium has a goal of 100% participation on 100% of the days in September. So far so good as everyone rode to work today.

The beauty of this event is the fact that it is a month long. The length will actually force me to deal with all the issues (clothes, showers, commute time, locks, lights, storage, rain gear, etc.) that need to be solved to make daily biking viable. I had a number of logistical issues this morning that I'll get solved before next week so the commute is easy and comfortable.

Having recently completed our FY2010 green house gas inventory, I know that 80 percent of our firm's CO2 emissions is from employee commuting. We will never be sustainable driving to work in single occupancy vehicles.

So many of the changes necessary for us to become sustainable are easy and simply need to be implemented. We know we can't go on driving everywhere like we did 20 years ago but when do we actually make the change? I am hoping that today was a day of significant change. For our firm to be sustainable, we can't rely on fossil fuels to get us around.

I'll also take this time to remind readers that the tax code provides a $20/month non-taxable fringe benefit to employees who ride bikes. I mentioned it in this earlier blog post.

Culture of Insatiability

Our economic system is broken. We are all tied into a system that creates lots of stuff while it destroys the environment and wreacks havoc on our lives.

The system forces us to work too much. The system forces us to compete with each other for basic necessities like food, shelter and health care. The system is destroying the fragile biosphere upon which our lives depend. The system often destroys communities. The system places the love of money above all others. The system has compromised our democracy and our ability to self-govern.

These are symptoms, not root causes.

The system is on auto-pilot (no one is in charge) and each of us dutifully do our little part to keep the system going. We work, we vote, we pay taxes, we work, work, and work some more.

We are part of a system that believes it has no limits. No limits to economic growth, population growth, having more, living longer, and even being more.

We live in a culture of insatiability and as long as we remain insatiable, we have no choice but to work, work, work leading to a life of destruction.

In this culture of insatiability and discontentment, we never find lasting satisfaction. Is there a wonder where our stress and unhappiness comes from?

Changing this system is a profound challenge however, I see no alternative as this system will grind on until the salmon are dead, the glaciers have all melted, and all of us are working hard to compete against our neighbors. There has to be a better way. Our challenge is to find a new way. This won't be easy but nothing short of a new way will save us.

I believe the first step is to decolonize our minds. We've all grown up believing this is the way and there is no other. That is a mental model that must be challenged.

One book (and author) I'd highly recommend to begin this journey is Ishmael by Daniel Quinn. If you haven't read Quinn, you really ought to. If you've read Ishmael, I highly recommend the other books and writings by Quinn. He really does offer a comprehensive view of sustainability that is often difficult to see with the voice of Mother Culture constantly singing in our ear.

Bush Tax Cuts Set to Expire

Amongst other things, President George W. Bush was famous for cutting taxes, spending money, and running up the deficit.

While his tax cuts reduced taxes on most if not all citizens, they really helped the super-rich with most of the benefits going to them. In fact, it could be argued that his tax cuts facilitated what might be the greatest transfer of wealth in our nation's history. Of course this transfer of wealth went upwards, from the lower- and middle-class to the upper class where we now have one of the highest concentrations of wealth in the world.

While President Bush certainly wanted his tax cuts to be permanent, passing temporary cuts made them appear less costly to the U.S. Treasury, and provided Republicans a future opportunity to make them permanent. That time is now. Most of those temporary tax cuts expire in 2010.

This is going to be a huge battle. The Republican talking points state that allowing the Bush tax cuts to lapse is the same thing as a tax increase while Obama's plan is to let the cuts expire on high income individuals while reducing taxes on average working families.

Who do you believe? How will these tax changes effect you?

The good folks over at the non-partisan Tax Foundation created the website MyTaxBurden where you can enter some tax information and see your tax obligation three ways:

• pre-Bush tax cuts (the system we'll return to if Congress fails to act)
• Bush tax cuts (what will happen if the tax cuts are extended)
• Obama's budget plan (What he ran on and what he's proposed)

I hope you'll check it out and I'd love it if you posted your results here.

Sustainable This and Sustainable That

A recent triple bottom line Google Alert I've set up led me to a blog about "Sustainable Museums." Additionally, the sponsored links (advertisements) on the email had a promotion for "Sustainable Post-it Notes" and another one for "Sustainable Jobs."

I'm not trying to disparage these folks though do you see the problem here?

Before some public speaking events I've been introduced as the founder of TriLibrium, a "sustainable" CPA firm.

Can a business or organization be sustainable inside an unsustainable culture? Are there sustainable jobs in an unsustainable civilization?

Because I'm a stickler for precise language when it matters, I've had to correct the well-meaning introduction calling TriLibrium sustainable. TriLibrium is sustainably-driven and eco-conscious but I have no idea whether we are sustainable.

I've heard people refer to certain farming practices as sustainable. Really? Over what time frame and under what circumstances. Will these "sustainable" farms hold up over 5 generations? What about 500 or 1000? If not, are they really "sustainable?"

I'm sick of hearing "sustainable" used as if it is a condition already achieved. We should all be driven towards sustainability since the problems with unsustainable practices will certainly wreck havoc on us and our offspring. However, I don't think anything inside our current system is "sustainable" since our cultural system clearly isn't.

I hope you'll join me in educating all the companies who call their products or services sustainable.

Reconcile and Review Bank Statements

Because cash is liquid and highly susceptible to theft and misappropriation, controls around cash should be appropriately strong.

One of the best control procedures for a small business or non-profit is the bank reconciliation. A bank statement will tell you a lot about the organization but only if you review the information in a timely manner.

You should examine cancelled checks and endorsements, track transactions between accounts, compare payroll checks with employee records, and ask questions about anything that looks unusual.

The bank reconciliation procedure is relatively easy and should be done monthly by someone independent of the accounting function. It doesn't make sense to have the accountant or bookkeeper perform the reconciliation because they'd be in a position to both commit the fraud or error and, cover up the problem. This is why you need a segregation of duties.

For a small non-profit, having the bank statements sent to an independent board member for monthly reconciliation may be one of the best and least expensive controls you can implement.

Segregation of Duties

As a CPA and business advisor, I hear about fraud and material errors far too often. Due to the lack of internal controls, small businesses are especially vulnerable. According the Association of Certified Fraud Examiners (ACFE), the median loss from fraud at a small business was over a $100,000 in the US. It is important for every organization create an appropriate internal control environment to reduce this risk.

A fundamental element in a strong internal control environment is the segregation of duties (SOD). By separating certain duties within an organization, no single employee should be in the position to both perpetrate and then conceal either errors or fraud. While the SOD can be difficult in a small organization, understanding this can help you improve your own control environment.

The principle duties that are incompatible and should be segregated are:

• Custody of assets.
• Authorization
• Recording keeping
• Reconciliation

Ideally, a different individual would do each of these duties since they serve as checks and balances on each other. By separating the tasks, the system would catch any errors unless two or more employees colluded. Collusion can override even a well designed system.

You must build checks and balances into your financial systems. Simple accounting errors, if gone undetected can devastate a company. Fraud as well. A strong and appropriate system of internal controls will reduce risk and increase accountability. Make sure you design these principles into your accounting system.

I haven't had a chance to check this out but found this free Fraud Prevention Check-up on the ACFE website: http://www.acfe.com/resources/publications.asp?copy=fraudprevention

Internal controls for fraud and error prevention

How are you managing your business finances? Many business owners are discovering that their assets are not as well protected as they thought. This is especially true in small business environments where a single employee manages all the finances. Often there are no checks and balances to verify that transactions are accurate.

Fraud frequently increases in a slowed economy as financial pressures grow and fewer people are asked to do more work. Pay cuts and other compensation reductions can leave some employees feeling entitled to more.

When proper, consistent procedures are not in place, employees can learn to manipulate the accounting system to their benefit. Whether they take money from the company or their mistakes are undiscovered, the end result can greatly impact your company’s management discussions, financial reports, and tax filings.

Unfortunately, once your financial records have been altered, discovering problems is extremely difficult. Most standard accounting practices are not designed to uncover internal problems such as embezzlement.

Therefore, the best way to safeguard your company’s assets is to recognize and improve weaknesses in your internal procedures.

I’ll write about some of these business practices over the next few posts.

Move Your Money

There is a movement afoot for people and organizations to move their banking from the mega-banks to a local bank.

The mega-banks (Bank of America, JP Morgan Chase, Goldman Sachs, Citigroup, Wells Fargo, Morgan Stanley, etc.) aren't particularly interested in you or your small business. Sure, they'll take your deposits while paying less than 1 percent on your account and they'll give you a credit card with interest rates in the range of 15-35 percent, but their real motivation is making money and serving their Wall Street masters.

The 10 largest banks hold over 60 percent of the nation's deposits. There are now 23 banks with over $100 billion in assets.

Local banks on the other hand serve their community. Their future prosperity is directly tied to the communities they operate in. Local banks don't give their executives million-dollar bonuses. Local banks hire local service providers like CPAs, attorneys, advertising agencies, marketing consultants, janitors, and other various service providers. At your local bank you'll find friendly people who know your name and want to help you.

Tomorrow, in Portland's Pioneer Courthouse Square, local bankers will be on hand to help answer questions as we encourage people to "Move Their Money." The festivities are from 1-4pm and should be a family fun event complete with music and speakers.

According to pollster John Zogby, nearly 10 percent of Americans have moved at least some of their money due to Wall Street abuses and the current banking crisis.

I hope you'll join me in moving your money and banking from the mega-banks that nearly brought down our economy to a local bank that is committed to and serves your community.

The Value of Planning

Yesterday I got some sad news. One of our clients died unexpectedly. He was under 40 and left behind a family and a business. While tragic, this isn't a rare event.

Are you prepared if this tragedy were to strike you or your business?

I'm not.

I know the importance of having a will yet I don't have one. If you die without a valid will, state law dictates how your estate will be divided by your heirs according to very specific set of rules. Your friends, favorite relatives and charitable benefactors will get nothing despite your intentions. The only way to not follow the state distribution process is to die with a valid will.

It is probably best to use an attorney but that isn't necessary. Check with your state to determine what form (In writing, witnessed by two people, etc.) a valid will may take.

I've had "getting a will" on my to-do list for years. I'm going to get this accomplished before the end of summer.

On the business side, it is important to consider and plan for the death of owners and key employees. You can use key person insurance, buy-sell agreements, life insurance, and similar techniques to prepare for these contingencies.

A business can have considerable market value which can dissipate quickly upon the death of an owner if proper plans are not in place. I've seen businesses lose half their market value or more when the owner dies without proper planning.

I'm meeting with an attorney next week to put in place the necessary plans so that my untimely death or disability doesn't compromise my business, family, coworkers, or clients.

New Hiring Incentives

The Hiring Incentives to Restore Employment (HIRE) Act was enacted on March 18, 2010. This tax law provides two new benefits to employers who hire certain previously unemployed workers ("qualified employees").

First, employers who hire a qualified employee will get an exemption on the employer's 6.2 percent share of social security tax on the wages paid to these employees, for wages paid from March 19, 2010 through December 31, 2010.

A qualified employee are individuals who begin employment after February 3, 2010 and before January 1, 2011, who have either been unemployed or employed less than 40 hours during the 60-day period before employment. The qualified employee cannot be a relative or otherwise related party.

You also can't lay someone off and then rehire them or another person to do the same job. However, you can qualify for the exemption if you replace someone who quit or was terminated for cause.

To put this in plain English, if you hire someone after February 3rd and expand your payroll, you may qualify for this exemption to avoid paying the 6.2 percent employer portion of the social security tax.

Employers should use the new Form W-11 to confirm new hire eligibility. Form W-11 must be signed by the employee to qualify for the exemption.

Additionally, for each new employee retained for at least 52 consecutive weeks, employers will be eligible for a general business tax credit equal to the lesser of $1,000 or 6.2 percent of wages paid.

I'm not clear but I believe this new hire retention credit will be a 2011 tax year credit since the 52nd week of continuous employment will fall sometime in 2011.