Is Your Company Hiring? Your Business May be Eligilbe for Tax Incentives!!!

President Obama signed into law H.R. 2847 which provides employers a tax incentive to encourage hiring. For every worker hired after February 3, 2010 and before January 1, 2011, employers may qualify for an exemption from the employer portion of the Social Security payroll tax (6.2%) on wages paid after March 18, 2010.

Eligible employers include for-profit and non-profit organizations. Federal, state and local governments do not qualify.

For an employer to be eligible for the tax incentive the employee that is hired must:

• Start employment after February 3, 2010 and before January 1, 2011.
• Sign a certified affidavit that he/she has not been employed for more than 40 hours during a 60-day period prior to his/her first day of employment.
• Not hired to replace another employee of the employer unless the separated employee left employment voluntarily or for cause and is being rehired.
• Cannot be a family member or relative.

In addition, this law includes a business credit for every qualified employee that is retained for at least 52 consecutive weeks. An employer may receive an additional income tax credit of $1,000 or 6.2% of wages paid to the employee for those 52 weeks.

For more information on the HIRE Act click here.

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