Employers who hire unemployed workers could get some sweet tax breaks.
A law went into effect March 18 providing incentives for hiring "qualified" jobless workers.
Under the HIRE Act (Hiring Incentives to Restore Employment), employers could get a payroll tax exemption, namely from paying their 6.2 percent share of social security taxes on wages paid to the worker. This applies to wages paid from March 19 through the end of the year.
But wait, there’s more.
For each "qualified" employee a business retains at least a year, the business can also get a general business tax credit up to $1,000. The exact amount is computed based on the wages paid to the employee over a 52-week period.
Of course, the catch is who these "qualified" workers are. According to IRS website, they must start on the job in 2010, but not before Feb. 3. They must have worked for no more than 40 hours in the 60 days prior to being hired. Employers can’t get the tax breaks for replacing another employee unless that employee quit or was fired for just cause. Oh, and the employer can’t get the tax break for family members hired.
To learn more, check out the IRS’s HIRE Webinar on July 8. To register, visit here.