Hiring Incentives to Restore Employment Act (HIRE)

A number of my corporate clients have used this to their benefit. If you are an employer, think about taking advantage of this new law, by hiring new workers this year.

Under the Hiring Incentives to Restore Employment (HIRE) Act, enacted March 18, 2010, two new tax benefits are available to employers who hire workers after February 3, 2010 and before January 1, 2011. The employer may qualify for a 6.2 percent payroll tax incentive, in affect, exempting them from their share of Social Security taxes on wages paid to those workers after March 18, 2010. This reduced tax witholding will have no effect on the employee's future social security benefits. The employers would still need to withold the employee's 6.2 percent share of Social Security taxes, as well as other income taxes.

Additionally, for each new worker retained for at least one year, the employer may claim an addtional general business tax credit of up to $1,000 per worker, when they file their 2011 federal income tax returns.