Business Tax Change: The HIRE Act
Just to keep you up to date, another BUSINESS tax change has been implemented!!
On March 18, 2010 President Obama signed the “HIRE” Act (aka: the Jobs Bill) into law.
The main idea of the HIRE Act is to provide employers with incentives to hire and retain employees.
1. HIRE will exempt an employer from paying the employer portion of Social Security taxes for the remainder of the year on new hires between Feb 3, 2010 and Jan. 1, 2011, who are currently unemployed & worked less than 40 hours during the previous 60 days. There are additional qualifications as well:
The new hire MUST sign an affidavit stating that they have not been employed for more than 40 hours total during the previous 60 days
2. The employee cannot be hired to replace another employee unless the previous employee was separated voluntarily or for cause AND the new employee cannot be a family member of the business owner.
3. Employers claim a credit for the 1st quarter, on their SECOND QUARTER 941.
4. If those workers stay on the payroll for at least 52 weeks, the employer would also get a business tax credit per employee of the lesser of $1,000 or 6.2 percent of the wages paid by the employer to the retained worker during the 52 consecutive week retention period.
We are following this HIRE Act closely and prepared to assist our clients with any and all changes that will affect them. I will keep you informed of additional changes.
Please let me know if you have any questions or feel I may be able to assist you in accurately taking advantage of these great incentives.
Regards,
Ron
