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| 502 Main Street Suite A Lisbon, ND 58054 Email Nick Storhaug Phone: 701-683-5303 Toll Free: 877-683-5303 Fax: 701-683-4315 |
Nick J. Storhaug
Certified Public Accountant
Certified Public Accountant
Click on the above link to see the Hire Act checklist
Two new tax benefits are now available to employers hiring
workers who were previously unemployed or only working part
Restore Employment (HIRE) Act enacted into law on March 18,
2010.
Employers who hire unemployed workers this year (after Feb. 3,
2010 and before Jan. 1, 2011) may qualify for a 6.2-percent
payroll tax incentive, in effect exempting them from their share of
Social Security taxes on wages paid to these workers after
March 18, 2010. This reduced tax withholding will have no effect
on the employee's future Social Security benefits, and
employers would still need to withhold the employee's
6.2-percent share of Social Security taxes, as well as income
taxes. The employer and employee's shares of Medicare taxes
would also still apply to these wages.
In addition, for each worker retained for at least a year,
businesses may claim an additional general business tax
credit, up to $1,000 per worker, when they file their 2011 income
tax returns.
The new law requires that the employer get a statement from
each eligible new hire certifying that he or she was unemployed
during the 60 days before beginning work, or alternatively,
worked fewer than a total of 40 hours for someone else during
the 60-day period.
workers who were previously unemployed or only working part
Restore Employment (HIRE) Act enacted into law on March 18,
2010.
Employers who hire unemployed workers this year (after Feb. 3,
2010 and before Jan. 1, 2011) may qualify for a 6.2-percent
payroll tax incentive, in effect exempting them from their share of
Social Security taxes on wages paid to these workers after
March 18, 2010. This reduced tax withholding will have no effect
on the employee's future Social Security benefits, and
employers would still need to withhold the employee's
6.2-percent share of Social Security taxes, as well as income
taxes. The employer and employee's shares of Medicare taxes
would also still apply to these wages.
In addition, for each worker retained for at least a year,
businesses may claim an additional general business tax
credit, up to $1,000 per worker, when they file their 2011 income
tax returns.
The new law requires that the employer get a statement from
each eligible new hire certifying that he or she was unemployed
during the 60 days before beginning work, or alternatively,
worked fewer than a total of 40 hours for someone else during
the 60-day period.
which will help you keep track of the paper
work need for the HIRE Act.
work need for the HIRE Act.