Employer Tax Credit Incentive For Hiring The Unemployed
On Thursday March 18, 2010, President Obama signed the Hiring Incentives to Restore Employment (“HIRE”) Bill, passed by the Senate the day before. Among other provisions, HIRE rewards employers who offer employment to the relatively long-term unemployed. Employers can take an exemption from Social Security payroll taxes for every worker hired after February 3, 2010, and before January 1, 2011, who has been unemployed for at least 60 days. The maximum value of the credit would be equal to 6.2% of wages up to $106,800, the FICA wage cap.
HIRE also provides an additional $1,000 income tax credit to businesses for every new employee retained for 52 weeks, to be taken on the employer’s 2011 income tax return.