Sedore, Hudson Valley CPA’s is always looking to help our clients stay informed and successful in their business ventures! Here are some recent developments that may affect your business.
Congress, in an effort to confront high unemployment, has recently passed the Hiring Incentives to Restore Employment (HIRE) Act. The Act has two major provisions that provide incentives for businesses that hire unemployed individuals.
Payroll Tax Forgiveness:
The HIRE Act provides relief from the employer portion of Social Security taxes on wages paid to a previously unemployed individual. The incentive applies to any qualified individual that was hired after February 3, 2010 and through the end of the year. The relief from the employer portion of Social Security tax will be recorded on the quarterly payroll taxes.
Business Credit for the Retention of Newly Hired Employees:
The HIRE Act also provides a credit of up to $1,000 for businesses that hire an unemployed individual and retain those employees for at least 52 consecutive weeks. The business credit will be recorded on the income tax return of the business.
The incentives arising from this new legislation are important to consider for any business that has recently hired employees or is considering doing so this year. There are additional paperwork requirements that must be met in order to take advantage of the tax incentives.
Please call us if you need more specific advice on how these new laws affect your business. We look forward to hearing from you soon!