New Hires Can Pay Off

The Hiring Incentives to Restore Employment (HIRE) Act was designed to encourage employers to hire and retain new workers. Employers who hire unemployed workers this year (after Feb. 3, 2010, and before Jan. 1, 2011) may qualify for a 6.2-percent payroll tax incentive. This may exempt them from the employer’s share of Social Security tax on wages paid to these workers after March 18. These tax benefits are especially helpful to employers who are adding positions to their payrolls. New hires filling existing positions also qualify but only if the workers they are replacing left voluntarily or for cause.In addition, businesses may also claim a new hire retention credit of up to $1000 for qualified employees who are retained for at least 52 consecutive weeks.Learn more details from this article HIRE Act: Questions and Answers on the IRS website.