The HIRE Act creates an immediate incentive for businesses to hire unemployed individuals by providing payroll tax forgiveness with an additional $1,000 credit for each qualified retained worker.  A qualified employee must start work anytime after Feb 3, 2010 and before Jan 1, 2011 and generally must have been unemployed for at least 60 days before his or her start date.  The bill’s payroll tax forgiveness measure effectively exempts employers from paying the 6.2 percent Social Security tax on wages paid to qualified new hires from the date of enactment through the end of 2010.  Based on the FICA wage cap of $106,800, the maximum value of the incentive is $6,621 for any “qualified employee.”

If you know you will be or have already started hiring people this year and have questions regarding this tax credit, please call us (972-377-7078) and we will be happy to guide you through how to take advantage of this tax credit.

This entry was posted on Friday, March 19th, 2010 at 9:08 pm and is filed under Personal Message from Mary Wilson Keener. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.