Wednesday, December 29, 2010

HIRE is Expiring, but tax credits are still available

Although the HIRE Act is set to sunset on December 31, 2010, employers should remember that tracking a qualified employee's wages goes beyond December 31, 2010.

Under the Act, employers are eligible to seek two types of credits:

1. The payroll tax exemption: the employer does not pay its 6.2 percent share of Social Security tax on wages paid to qualifying employees during the period of March 19, 2010-December 31, 2010.

2. The new hire retention credit: for each qualified employee you retain for at least 52 consecutive weeks, the employer is eligible for a business tax credit of 6.2 percent of wages paid to the qualified employee during that 52 week period (up to $1000).

You can read more about the HIRE Act in our post from April.

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