Dresser & Associates

HIRE Act – What Does it Mean for Your Business?

About a month ago, President Obama signed the HIRE (Hiring Incentives to Restore Employment) Act into law. This new Act was put into place to stimulate employment and in turn, lower unemployment rates. The Act outlines specific incentives for companies that hire unemployed workers. Below are some of the specifics of the Act.

  • The mandatory 6.2% social security tax may be exempted for the employer hiring the unemployed.
  • The tax exemption is for employees hired between February 3, 2010, and January 1, 2011.
  • The worker must be unemployed for at least 60 days prior to hire for the employer to receive the tax incentives.
  • Businesses may claim a new hire retention credit of up to $1,000 per worker when they file their 2011 income tax returns.

So, will this help your business? Yes. If you had been planning on adding new employees to your payroll. There is no limit to the tax benefits that can be claimed through the HIRE Act. Also, it is recommended that employees be hired earlier in the year because the tax benefit will be greater.
Employees eligible for hire must prove that they have been unemployed for at least 60 days. The law requires that employers receive a statement, under penalty of perjury, from each employee hired. The form below has also been issued by the IRS.

Hiring Incentives to Restore Employment (HIRE) Act Employee Affidavit

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Dresser and Associates

Posted in Compliance & Taxes, Human Resources, Recruiting | Comments Off on HIRE Act – What Does it Mean for Your Business?

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