The HIRE Act (Hiring Incentives to Restore Employment) gives shops an incentive to hire unemployed workers.
The new legislation offers employers a 6.2-percent tax credit on the Social Security portion of FICA for any workers hired between Feb. 3, 2010, and Jan. 1, 2011. The employee must have worked less than 40 hours in the 60 days prior to being hired and sign an IRS W-11 affidavit stating they meet these requirements.
“The best part is that you’re getting your tax credit immediately,” says Steve Kamerschen vice president of sales for Corporate Payroll Services (www.corpay.com). “We’ve seen a slight uptick in the number of new hires at the companies we serve already.”
There is also a second tax incentive of up to $1,000 you can claim on your 2011 tax returns for qualified workers who are employed for 52 or more consecutive weeks.
“This is a great time to be hiring,” says Kamerschen. “There are a lot of quality people out there who are unemployed to choose from.”
For IRS form W-11 or for details on either credit, search “HIRE Act” on www.irs.gov or ask your tax or payroll advisor.