Jul
2010
Have you hired anyone off unemployment?
Two New Tax Benefits Aid Employers Who Hire and Retain Unemployed Workers.
Under the Hiring Incentives to Restore Employment (HIRE) Act, two new tax benefits are available to employers who hire workers who were previously unemployed or only working part time.
The first, the payroll tax exemption, provides employers with an exemption from the employers 6.2 percent share of Social Security tax on wages paid to qualifying employees for wages paid from March 19, 2010 through December 31, 2010. The reduced tax withholding will have no effect on the employees future Social Security benefits, and employers would still be required to withhold the employees 6.2 percent share.
The second new tax benefit allows a business to claim an additional general business tax credit, up to $1,000 for each worker who is retained for at least one year, when they file their 2011 income tax return.
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 are replacing someone who left voluntarily or for cause. Relatives do not qualify for this program. For additional information about the HIRE program check out the IRS Website at http://www.irs.gov/businesses/small/article/0,,id=220745,00.html