Incentive to Hire New Employees

From the Worldwide ERC this notice was received- On March 17, 2010, President Obama signed legislation that provides incentives for businesses to hire the unemployed. Under the ???Hiring Incentives to Restore Employment Act??? of 2010, employers that hire new workers after February 3, 2010 and any time during the rest of 2010 will be exempted from the employer???s 6.2% share of FICA for those workers, provided the workers were unemployed for the 60 days before starting work or worked less than full time (40 hours per week) for someone else during that period. The workers must be new workers, rather than replacements for existing workers, but new hires filling existing positions that are vacant will also qualify so long as the previous worker left voluntarily or for cause. For a worker at the maximum social security wage base of $106,800, the saving to the employer would exceed $5,000. In addition, if the new worker is retained for a full year, the employer will receive an additional $1,000 general business tax credit. The IRS said it will be providing necessary forms and instructions within the next few weeks, but that in the meantime employers should obtain from each new employee a statement indicating that the new employee meets the requirements outlined above.
Advertisements
This entry was posted in Uncategorized and tagged . Bookmark the permalink.

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