Skip to content

HIRE Act Might Make Now the Right Time for You to Hire

September 10, 2010

contributed by SCORE Lancaster Volunteer Dawn Mentzer

 

If you own a small business and have been on the fence about whether or not now is the right time to hire employees, you’ll want to read up on the Hiring Incentives to Restore Employment (HIRE) Act. The federal government put it into action in March of this year to give significant tax benefits to employers who hire “qualified employees”.  Qualified employees are those who began or will begin employment with you between February 3, 2010 and January 1, 2011 and were previously unemployed or worked less than 40 hours per week throughout the 60 days prior to you hiring them.

What’s in it for you? For one, tax exemption from the employer’s 6.2% share of social security tax on all of qualified employees’ wages from March 19, 2010 (the date when the HIRE Act was enacted) through December 31, 2010. Second, you could claim a “new hire retention credit” of up to $1,000 per retained worker (qualified employees who remain employees for 52 consecutive weeks).

As you may have guessed, there are other stipulations, rules, and requirements, so we advise you to visit the Q&A on the IRS.gov website to get all the specifics first-hand. There’s a good bit to read there, but the potential benefits to your bottom line could more than compensate for your investment of time in self-education.

Advertisements
No comments yet

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: