HIRE ACT

Hiring Incentives to Restore Employment (HIRE) Act

This act creates significant tax incentives including tax breaks and credits for hiring previously unemployed workers. If your business could use additional workers this is a great opportunity.

Enacted March 18, 2010, two new tax benefits are available to employers who hire certain previously unemployed workers (“qualified employees”).

The first, referred to as the payroll tax exemption, provides employers with an exemption from the employer’s 6.2 percent share of social security tax on wages paid to qualifying employees, effective for wages paid from March 19, 2010 through December 31, 2010.

In addition, for each qualified employee retained for at least 52 consecutive weeks, businesses will also be eligible for a general business tax credit, referred to as the new hire retention credit, of 6.2 percent of wages paid to the qualified employee over the 52 week period, up to a maximum credit of $1,000.

The two tax benefits are especially helpful to employers who are adding positions to their payrolls. New hires filling existing positions also qualify but only if the workers they are replacing left voluntarily or for cause. Family members and other relatives do not qualify.

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Source www.IRS.Gov

Eric Scott is providing the information on this web site for general guidance only. This general information is provided to represent a good faith effort to provide accurate and complete tax information. The information provided herein should not be used as a substitute for consultation with professional advisers. Every situation may be unique, please contact us to discuss your particular situation.