Transforming Client Accounting Blog

In the spring, President Obama signed into law the Hiring Incentives to Restore Employment (HIRE) Act, more commonly known as the federal “jobs bill.” The cornerstone of the HIRE Act is a federal program that provides employers with incentives to hire and retain certain previously unemployed workers (“qualified employees”), including:

• Payroll Tax Exemption
  Employers will be exempt from their portion of Social Security taxes (6.2 percent) for the remaining year—through December 31, 2010—for new hires who had been unemployed for at least 60 days, or who had worked no more than 40 hours total.
• New Hire Retention Credit
  Employers can claim a business tax credit of up to $1,000 for each qualified employee who stays on payroll for at least 52 consecutive weeks. 

Would you like additional information? View a recent Infocast on this topic.
You can view the recent AICPA Infocast on “The 2010 HIRE Act Understanding the Employer Incentives” to help you understand and take decisive action on the newly required components of HIRE Act and what it means to your firm and your clients.

The Infocast was developed to help you ensure your clients stay in compliance with this new legislation and help you better recognize how your clients can benefit from the key provisions, such as increased tax credits and reduced payroll taxes.  

Also visit www.paychex.com/hireact for more information and to calculate the possible savings for your client’s business.