Tip Tuesday: Be Aware of the HIRE ACT & SAVE!

Since unveiling our payroll department here at Benefit Advisors, we have been busy doing our homework in order to educate our customers on new and upcoming policies and procedures that may affect your business.

A recent payroll hot button? The HIRE Act. Come to find out, many aren't even aware it exists.

So, what is it you ask?

Well, according the IRS Web site, "Under the Hiring Incentives to Restore Employment (HIRE) Act, enacted March 18, 2010, two new tax benefits are available to employers who hire certain previously unemployed workers (“qualified employees”).

The first, referred to as the payroll tax exemption, provides employers with an exemption from the employer’s 6.2 percent share of social security tax on wages paid to qualifying employees, effective for wages paid from March 19, 2010 through December 31, 2010.

In addition, for each qualified employee retained for at least 52 consecutive weeks, businesses will also be eligible for a general business tax credit, referred to as the new hire retention credit, of 6.2 percent of wages paid to the qualified employee over the 52 week period, up to a maximum credit of $1,000."

For more informatiom, visit the IRS.gov Questions and Answers Page for Employers by clicking here.

For a HIRE Act User Guide, courtesy of Infinisource and Benefit Advisors Payroll Division, please click here.

I hope you've found today's blog especially helpful!

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Until Next Week,

Michelle D.

Source: IRS.gov