The HIRE Act-Hiring Incentives to Restore Employment-offers employment tax breaks for business that hire unemployed people, and extends further benefits to employers if those workers remain on the job for more than one year. The Act doesn’t place a limit on the number of hires that each company can have and it doesn’t allow a company to terminate employees to make room for hiring employees that would provide a benefit to the employer.

Employers benefit if they hire employees who have worked fewer than 40 hours in the 60 days before they were hired. There are two major tax incentives:

• For any qualified individual hired after February 3 and before January 1, 2011 the business will save the employer portion of the Social Security tax which is 6.2%. Wages paid from March 19 through December 31 qualify for the credit up to $6,622.00.
• Employers can also get a tax credit of up to $1,000.00 after one year of employment for each employee hired under the provisions of the Act. Wages paid during the previous 26 weeks must equal at least 80% of the worker’s wages during the first 26 weeks of employment.

For additional information on how you might benefit under HIRE, please contact Kirby Horton at 615-261-4811 or at kirby@preferredhealthgroup.com.