If you find for an employee in payroll that the employer deductions for FED3 and FED7 are not calculating. Check in Payroll Employee Maintenance that the Hire Act check box is not checked.
HIRE Act Employee specifies whether the employee qualifies for the Hiring Incentives to Restore Employee (HIRE) Act. If selected, the employer is exempt from their share of social security tax on wages paid to the employee from March 19, 2010 through December 31, 2010. You must remove the check mark from this check box for all qualified employees when the HIRE Act expires.
Note: Wages earned while the employee qualifies as a HIRE Act employee are included in Box Number 12, Box Letter CC – HIRE Exempt Wages and Tips on the W-2 and are included in the electronic file.