There is Still Time for Your Business to Take Advantage of the HIRE Act! October 29, 2010Posted by Arieh M. Flemenbaum in Business, business planning, Business tax, Employer issues, Employment, Legal Information, taxes.
Tags: Business, Business tax, Chicago Business, Employment issues, small business, small business tax credit, tax credit, taxes
There is still time for your business to take advantage of the tax credits available for hiring unemployed workers. The tax credits are available in 2010 as part of the Hiring Incentives to Restore Employment (HIRE) Act.
There are 2 tax benefits are now available to employers hiring workers who were previously unemployed or only working part-time:
- Employers who hire unemployed workers this year (by 12/31/10) may qualify for a 6.2-percent payroll tax incentive. This hiring incentive effectively exempts the employers from their share of Social Security taxes on wages paid to the hired employees for 2010. Employers would still need to withhold the employee’s 6.2-percent share of Social Security taxes, as well as employer and employee’s shares of Medicare taxes and withholding for income taxes.
- In addition, for each worker retained for at least a year, businesses can claim an extra general business tax credit, up to $1,000 per employee, when the company files its 2011 income tax returns.
See the following IRS article for more guidance: http://www.irs.gov/newsroom/article/0,,id=220326,00.html