{"id":246,"date":"2010-03-19T12:29:36","date_gmt":"2010-03-19T17:29:36","guid":{"rendered":"http:\/\/lakamsani.wordpress.com\/?p=246"},"modified":"2018-10-16T20:10:32","modified_gmt":"2018-10-16T20:10:32","slug":"new-hire-act-2010","status":"publish","type":"post","link":"https:\/\/lakamsani.me\/blog\/2010\/03\/19\/new-hire-act-2010\/","title":{"rendered":"New Hire Act 2010"},"content":{"rendered":"
President Obama has signed into law the Hiring Incentives\u00a0to Restore Employment (HIRE) Act, which is focused on<\/div>\n
accelerating the hiring of unemployed workers.The HIRE Act hasmany provisions that impact employers, including a<\/div>\n
payroll tax exemption and increased tax credits for employers that\u00a0meet certain eligibility requirements. The legislation immediately\u00a0enhances employers\u2019 cash flow by permitting employers to retain\u00a0the employer portion of the Social Security tax ordinarily remitted.<\/div>\n
Social Security Tax Exemption<\/div>\n
The 6.2% Employer Social Security Tax exemption applies to 2010<\/div>\n
wages paid afterMarch 18, and before January 1, 2011, to individuals<\/div>\n
hired after February 3, 2010, who were previously unemployed for at<\/div>\n
least 60 days and who do not exceed the $106,800 Social Security<\/div>\n
wage base.<\/div>\n
\u2022 Employers can save the 6.2%Employer Social Security Tax,whether<\/div>\n
they hire a $40,000worker or a $90,000worker. Employers, including<\/div>\n
nonprofit organizations, and colleges and universities, would not<\/div>\n
have towait until 2011 to benefit fromthis tax relief because savings<\/div>\n
would accrue with each payroll processed.<\/div>\n
\u2022 The legislation also encourages businesses to hireworkers earlier<\/div>\n
in the year because the tax benefit will be greater. For example, a<\/div>\n
$60,000 worker hired on April 1, 2010 saves an employer about<\/div>\n
$2,800 in taxes. Delaying the hiring until June 1 would reduce the<\/div>\n
savings to about $2,200.<\/div>\n
\u2022 This exemption has no cap or limit as to the total amount of tax<\/div>\n
benefits that can be claimed by an employer. Employers can save<\/div>\n
up to $6,622 per qualifying worker, whether they hire one worker<\/div>\n
or hundreds of new workers.<\/div>\n
Tax Credit<\/div>\n
Employers will receive an income tax credit which is either $1,000<\/div>\n
for each qualifying worker hired after February 3, 2010, and<\/div>\n
employed for at least 52 consecutive weeks, or 6.2%of wages paid<\/div>\n
to the qualifying worker over the 52-week period, whichever is<\/div>\n
less. Wages during the last 26 weeks must be at least 80 percent<\/div>\n
of wages paid for the first 26 weeks.<\/div>\n
\u2022 Any new hire must certify \u201cby signed affidavit,\u201d under penalties<\/div>\n
of perjury, that he\/she has \u201cnot been employed for more than 40<\/div>\n
hours during the 60-day period ending on the date such individual<\/div>\n
begins such employment.\u201d<\/div>\n
\u2022 Neither the 6.2% Employer Social Security Tax exemption nor<\/div>\n
the retention tax credit is permitted if a person is hired to<\/div>\n
replace another employee \u201cunless such other employee is<\/div>\n
separated from employment voluntarily or for cause.\u201d<\/div>\n

President Obama has signed into law the Hiring Incentivesto Restore Employment (HIRE) Act, which is focused onaccelerating the hiring of unemployed workers.The HIRE Act hasmany provisions that impact employers, including apayroll tax exemption and increased tax credits for employers thatmeet certain eligibility requirements. The legislation immediatelyenhances employers\u2019 cash flow by permitting employers to retainthe employer portion of the Social Security tax ordinarily remitted.Social Security Tax ExemptionThe 6.2% Employer Social Security Tax exemption applies to 2010wages paid afterMarch 18, and before January 1, 2011, to individualshired after February 3, 2010, who were previously unemployed for atleast 60 days and who do not exceed the $106,800 Social Securitywage base.\u2022 Employers can save the 6.2%Employer Social Security Tax,whetherthey hire a $40,000worker or a $90,000worker. Employers, includingnonprofit organizations, and colleges and universities, would nothave towait until 2011 to benefit fromthis tax relief because savingswould accrue with each payroll processed.\u2022 The legislation also encourages businesses to hireworkers earlierin the year because the tax benefit will be greater. For example, a$60,000 worker hired on April 1, 2010 saves an employer about$2,800 in taxes. Delaying the hiring until June 1 would reduce thesavings to about $2,200.\u2022 This exemption has no cap or limit as to the total amount of taxbenefits that can be claimed by an employer. Employers can saveup to $6,622 per qualifying worker, whether they hire one workeror hundreds of new workers.Tax CreditEmployers will receive an income tax credit which is either $1,000for each qualifying worker hired after February 3, 2010, andemployed for at least 52 consecutive weeks, or 6.2%of wages paidto the qualifying worker over the 52-week period, whichever isless. Wages during the last 26 weeks must be at least 80 percentof wages paid for the first 26 weeks.\u2022 Any new hire must certify \u201cby signed affidavit,\u201d under penaltiesof perjury, that he\/she has \u201cnot been employed for more than 40hours during the 60-day period ending on the date such individualbegins such employment.\u201d\u2022 Neither the 6.2% Employer Social Security Tax exemption northe retention tax credit is permitted if a person is hired toreplace another employee \u201cunless such other employee isseparated from employment voluntarily or for cause.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

President Obama has signed into law the Hiring Incentives\u00a0to Restore Employment (HIRE) Act, which is focused on accelerating the hiring…<\/p>\n","protected":false},"author":4,"featured_media":662,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7,8],"tags":[],"class_list":["post-246","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-related","category-i-read-on-internet","wpcat-7-id","wpcat-8-id"],"_links":{"self":[{"href":"https:\/\/lakamsani.me\/blog\/wp-json\/wp\/v2\/posts\/246","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lakamsani.me\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lakamsani.me\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lakamsani.me\/blog\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/lakamsani.me\/blog\/wp-json\/wp\/v2\/comments?post=246"}],"version-history":[{"count":1,"href":"https:\/\/lakamsani.me\/blog\/wp-json\/wp\/v2\/posts\/246\/revisions"}],"predecessor-version":[{"id":685,"href":"https:\/\/lakamsani.me\/blog\/wp-json\/wp\/v2\/posts\/246\/revisions\/685"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lakamsani.me\/blog\/wp-json\/wp\/v2\/media\/662"}],"wp:attachment":[{"href":"https:\/\/lakamsani.me\/blog\/wp-json\/wp\/v2\/media?parent=246"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lakamsani.me\/blog\/wp-json\/wp\/v2\/categories?post=246"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lakamsani.me\/blog\/wp-json\/wp\/v2\/tags?post=246"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}