Federal Hiring Incentives Act

On March 18, 2010, President Obama signed the Hiring Incentives to Restore Employment Act of 2010 (HIRE) into law. If you hire someone who has been unemployed for 60 days or more, you do not have to pay the employees payroll tax (6.2 percent) from the date of hire for the balance of 2010. In addition, you can get a $1,000 tax credit for qualified employees you hire this year and remain employed at least 52 weeks.

Let's say you hire an unemployed person on April 1, you pay them a salary of $40,000 and they work for you at least one year. The new law will save you $1,860 on payroll tax plus allow a $1,000 income tax credit. It seems very unlikely that this would be enough incentive to hire that new employee unless you were going to make the hire anyway. A nice gift, but not much incentive.

For more information, click here to view a Special Special Report from the law firm Whyte Hirschboeck Dudek on this legislation.