The HIRE Act and How It May Impact Your Business
The Hiring Incentives to Restore Employment Act (HIRE), also known as the "jobs bill," is a plan to create jobs by providing a temporary tax break to companies that hire the unemployed. The bill also extends federal highway programs through the end of the year. Current Status On March 18, 2010, the President signed the HIRE Act into law . The IRS is now outlining how to handle the Act's provisions. We will continue to monitor the situation, and will update you as final details emerge. The cornerstone of the HIRE Act is a federal program that will provide employers with incentives to hire and retain employees. HIRE will exempt an employer from paying the employer portion of Social Security taxes for the remainder of the year on new hires who are currently unemployed. If those workers stay on the payroll for at least a year, the employer would also get a $1,000 business tax credit per employee. Social Security Tax Forgiveness The 6.2% employer portion of t...