I mentioned this in another thread regarding hiring in hopes that PMQ gives the subject some publicity, but I feel it deserves its own thread to draw more attention to it. My accountant brought this to my attention yesterday and after a bit of research it looks like something that can save me more than a few thousand dollars. I will preface this with the disclaimer that I am FAR from a tax professional and am only suggesting that you bring this info to the attention of your CPA or payroll company.
The Hiring Incentives to Restore Employment (HIRE) Act looks to have been enacted with the intentions of lowering the unemployment rate. In a nutshell, if you hire someone that has worked less than 40 hours in the last 60 days, you could be exempt from paying the matching 6.2% of their social security tax from the hire date till the end of 2010. To sweeten the pot, if the employee works for you for 52 weeks, you will be rewarded with a tax credit of an additional 6.2% of his payroll up to $1000. Of course, this is the IRS so nothing is quite that easy. There are a few other qualifications the main one being that the new employee can not be hired to replace someone that didn’t either quit or was terminated with cause. You can find plenty of info on this by doing a google search of HIRE Act tax credits. I am also including a link to an IRS site that describes this in detail and includes links to FAQs. If you are like most pizza shops that endure high turnover rates, do yourself a favor and look into this.
http://www.irs.gov/newsroom/article/0, … 26,00.html
The Hiring Incentives to Restore Employment (HIRE) Act looks to have been enacted with the intentions of lowering the unemployment rate. In a nutshell, if you hire someone that has worked less than 40 hours in the last 60 days, you could be exempt from paying the matching 6.2% of their social security tax from the hire date till the end of 2010. To sweeten the pot, if the employee works for you for 52 weeks, you will be rewarded with a tax credit of an additional 6.2% of his payroll up to $1000. Of course, this is the IRS so nothing is quite that easy. There are a few other qualifications the main one being that the new employee can not be hired to replace someone that didn’t either quit or was terminated with cause. You can find plenty of info on this by doing a google search of HIRE Act tax credits. I am also including a link to an IRS site that describes this in detail and includes links to FAQs. If you are like most pizza shops that endure high turnover rates, do yourself a favor and look into this.
http://www.irs.gov/newsroom/article/0, … 26,00.html
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