Accounting Advantage’s HIRE ACT 2010 Calculator
Facts About the Newly Enacted Hiring Incentives to Restore Employment (HIRE) Act:
- Qualified employers who hire qualifying employees will be exempt from the 6.2 percent employer portion of the Social Security tax paid on wages after March 18, 2010 through December 31, 2010.
- Qualified employers who retain qualifying employees for at least 1 year will qualify for a $1,000 per worker general business tax credit when they file their 2011 income tax returns for each qualifying employee who is retained for at least 1 year.
- Employers must still deduct the employee contribution to Social Security and employers and employees must still contribute to Medicare as well as all income taxes.
Qualifying Employers Include:
- Agricultural employers
- Tax-exempt organizations
- Public colleges and universities
Qualifying Employers DO NOT Include:
- Household Employers
Qualifying Employees Include:
- Those who are hired between February 3, 2010 and December 31, 2010
- Those who attest that they were unemployed or have not worked more than 40 hours for somebody within the previous 60 days of hire (The IRS has provided a form for this)
- Those who are filling newly created positions
- Those who are filling existing positions where the former employee voluntarily left
- Those who are filling existing positions where the former employee was dismissed for cause
Qualifying Employees DO NOT include
- Family members or other relatives
- Anyone who doesn't meet the above qualifying criteria
This is not legal or tax advice. We are providing you with this summary only as a courtesy. Be sure to consult with your legal council to determine how the specifics of this or any law may impact your organization.