Federal HIRE ACT – 6.2% Payroll Tax Reduction/ $1,000 Hiring Credit

Two new hiring tax benefits are now available to employers:

Read the IRS announcement of the 2010 Hiring Act:
http://www.irs.gov/newsroom/article/0,,id=220326,00.html

Download the CCH Tax Briefing Special Report .pdf:
President Signs HIRE Act

The links above provide a summary of the 6.2% employer FICA tax holiday through December 31st for hiring employees who have been unemployed (or worked less than 40 hours a week for another employer) prior to being hired.

The HIRE Act is now law:
An employer hiring credit of up to $1,000 is also available in 2011 for non-family employees hired after Feb. 3, 2010 and retained for at least 12 months.  The employee must either be: 1) hired for a newly created position, OR  a replacement of an employee who quit or was let go “for cause”.

So as not to put further strain on the Social Security system, the payroll tax reduction under the HIRE Act will be transferred from the federal General Fund.

For full text of the new HIRE ACT statute: http://www.bnatax.com/insightsdetail.aspx?id=2147484627

Find additional useful links on the Tax Professor Blog:
http://taxprof.typepad.com/taxprof_blog/2010/03/president-obama.html

For weekly tax and financial updates, please follow Blake on twitter:
http://twitter.com/taxcredits_CPA” target=”_blank

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