The recently passed Hiring Incentives to Restore Employment Act (HIRE) gives employers two types of tax relief. Employers can receive an exemption from paying for hiring employees who meet a particular threshold for unemployment, and then earn a credit for retaining employees for a particular time. In other words, you can save money while getting the help you need to get the job done.
The tax exemption is for hiring unemployed workers. Employees that would qualify the employer for the tax exemption have worked less than 40 hours in the 60 days preceding the hire date. The employer would receive an exemption from the employer?s 6.2 percent share of social security tax on wages paid. For full information regarding this type of exemption, reference the following link ? http://tinyurl.com/2awlt66
The tax credit applies to employers who retain the employees hired under HIRE for at least 52 weeks. The amount of the credit is the lesser of $1,000 or 6.2 percent of wages (as defined for income tax withholding purposes) paid by the employer to the retained qualified employee during the 52 consecutive week period. For full information regarding this type of exemption, reference the following link ? http://tinyurl.com/24xs9o7
For full information, you can go to http://tinyurl.com/y5fqj8d
If you have additional questions, contact your favorite accountant. That?s me, of course!