HIRE Act
(The New Hiring Incentives)

What is the Hire act?

The main thrust of this Act is a payroll tax holiday and up to $1000 tax credit for businesses that hire qualified unemployed workers. Lets look at some of the important details.

Payroll tax holiday

• Exempt from the employers 6.2% share of Social Security payroll tax for the remainder of 2010. Only wages paid after 3/18/2010 are eligible.
  
  
• $1000 non refundable tax credit for a minimum of 52 weeks of continuous employment. To be taken on the 2011 company tax return.

Who can take the Credit?

• All companies in the private sectors and the not for profit sectors are eligible to take the credit.

What is a “Qualified Employee”?

• The employee must have been hired after 02/03/2010 and before 01/01/2011.
  
  
• The employee must certify by signed affidavit (form W-11), or similar statement that he or she has not been employed for 60 days or worked fewer than 40 total hours during the previous 60 day period.
  
  
• The employee can not be hired to replace an existing employee unless they were voluntarily separated or for good cause.
  
  
• The “Qualified Employees” can not be related to the employer, nor can they own 50% of the business.
  
  
• The “Qualified Employee” may be hired for any number of hours, part or full time.

What Unity HR will be doing.

• Once a new hire has been determined to be a “Qualified Employee” notify Unity HR immediately. This will allow us the opportunity to get our system set up to properly process the tax credits with their first payroll. Remember that any employee hired after 02/03/2010 may be eligible for the credit, and any retroactive credit due to your company will be taken in the 2nd quarter.

CLICK HERE to visit the Hire Act FAQs site.