H.I.R.E. Act Employer Incentives
The Hiring Incentives to Restore Employment (HIRE) Act was signed into law by President Obama Thursday, March 18 2010. This is intended to provide employers an incentive to hire previously unemployed workers.
What is the HIRE Act? This legislation provides employers an exemption from the EMPLOYER portion of Social Security taxes for the period February 3, 2010, and January 1, 2011. The employer portion of Social Security is 6.2%. There is an additional $1000 incentive if the employee stays for a year.
The logistics are to be determined. The IRS will develop a mechanism for employers to claim the credit. Employers must require any new hire to certify under penalty of perjury his/her previous employment status by signed affidavit and maintain this documentation in their permanent records.
What is the HIRE Act? This legislation provides employers an exemption from the EMPLOYER portion of Social Security taxes for the period February 3, 2010, and January 1, 2011. The employer portion of Social Security is 6.2%. There is an additional $1000 incentive if the employee stays for a year.
The logistics are to be determined. The IRS will develop a mechanism for employers to claim the credit. Employers must require any new hire to certify under penalty of perjury his/her previous employment status by signed affidavit and maintain this documentation in their permanent records.
posted by Kathleen Webb at
08:09
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