|HIRE ACT -- This bill provides significant tax credits to businesses that hire unemployed workers.|
On March 18, 2010, President Obama signed the Hiring Incentive to Restore Employment Act (HIRE Act), also referred to as the Jobs Bill. This bill provides significant tax credits to businesses that hire unemployed workers.
Employer Exemption of 6.2% Social Security Payroll Contribution
At its core, the bill grants employers an exemption for their 6.2% Social Security (FICA) payroll contribution for every new employee hired after February 3, 2010, and before January 1, 2011. If you hire a new employee that has not worked more than 40 hours in the last 60 days, you are eligible for the exemption.
In addition, if the person that you hire is retained for 52 weeks, you may be eligible for a additional tax credit. If an employee is paid $53,400, it could save a maximum of $3,310.