The Hire Act: Business Credit for Retention of Certain Workers

In March 2010, President Obama signed into law the Hiring Incentive to Restore Employment Act for 2010. The key provisions in the Act include the Social Security (Payroll) Tax Exemption and Business Credit for certain retained workers. The Social Security Tax Exemption expired on 12/31/2010.
Employers can still claim the Business Credit on their corporate income tax return.

The amount of the business credit is the lesser of $1,000 or 6.2 percent of wages paid by the employer to the retained qualified employee during the 52 consecutive week period. The wages of the qualified employee during the last 26 weeks must equal at least 80% of wages for the first 26 weeks.

For more information, visit the IRS website at www.irs.gov/businesses/small/article/0,,id=220747,00.html.