President Obama Signs HIRE Act into Law
No Employer Social Security Tax on Unemployed New Hires in 2010
On March 18, President Obama signed the Hiring Incentives to Restore Employment (HIRE) Act (Pub. Law 111-147), one day after it received final approval by the U.S. Senate.
The HIRE Act creates:
- A limited social security tax "holiday" for the employer share of social security tax on wages paid to a previously unemployed new hire, and
- A separate business tax credit of up to $1,000 if the employee is employed for at least 52 weeks.
The aim of the Act is to free up funds for employers to hire individuals who have been out of work to fill new positions and further stimulate the recovering economy.
Social Security Tax "Holiday"
The Act provides relief from the employer share of social security tax, which is 6.2% of covered wages up to $106,800, on wages paid by a "qualified employer" to a "qualified individual" from March 19 (the day after the Act was enacted) through December 31, 2010. Wages paid to a qualified individual on or before the date of enactment (March 18) or after December 31, 2010 do not qualify for the social security tax relief. Wages earned by a qualified individual before March 19 but paid on or after March 19 do qualify for the social security tax relief.
Let our experts manage the Employer Tax Credit programs for you, insuring that your company receives all the credits that it is entitled to!