Labor & Employment Alert: New Tax Incentives for Hiring Unemployed WorkersOn May 4, 2010 by Schnader
Businesses that hire individuals who were previously unemployed or working only part-time may be eligible for two new tax credits under the Hiring Incentives to Restore Employment (HIRE) Act:
- Social Security tax forgiveness – the HIRE Act provides an exemption from the employer’s 6.2% share of Social Security tax withheld on certain wages paid to these individuals in 2010.
- A retained workers tax credit – the HIRE Act provides a business tax credit up to $1,000 per new hire for each who is retained for at least one year.
These benefits are especially helpful for employers who are adding positions to payrolls, starting new businesses, or are using new hires to fill previously filled positions after a period of downsizing.