Please tell me you KNOW about the HIRE ACT!
While many an employer is still challenged by the economy, other’s are beginning to feel the squeeze for talent. With business picking up in certain sectors and recalls being exhausted it is important to remember that the HIRE Act is available. The Hiring Incentives to Restore Employment Act, commonly referred to as the “HIRE Act” was signed by President Obama in the first quarter of 2010. The HIRE Act provides attractive tax incentives for businesses that hire unemployed workers. Any employer that filters talent in the labor pool solely for the employed is likely to miss out on a great talent find for a bargain price. Not to mention, the most qualified candidate should be hired, unemployed, employed, etc. The HIRE Act provides the following tax incentives:
Exemption from the employer’s share of FICA/OASDI taxes (a 6.2 % payroll tax savings) for employers who hire unemployed workers after February 3, 2010, and before January 1, 2011; and
A $1,000 general business tax credit for each employee who remains employed with the employer for at least one year.
Qualified hires include those that are placed between February 3, 2010 and January 1, 2011. The credit is intended for new additions to budgeted headcount thus this will not apply to any replacement requistions unless the former employee quit voluntarily or was terminated for cause.
Most employers should have been advised by their Accountant and/or Payroll vendors but just in case, please tell me you KNOW NOW!