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Ready, aim, hire! Target unemployeds for payroll tax breaks

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in Hiring,Human Resources,Small Business Tax,Small Business Tax Deduction Strategies

The new Hiring Incentives to Restore Employment Act (HIRE) Act of 2010 provides a couple of key payroll tax breaks for employers that hire new employees.

Strategy: Zero in on certain unemployed workers. If your company hires a “qualified employee,” the business is exempt from the employer’s 6.2% Social Security tax portion of the FICA tax on the employee’s wages for the rest of 2010. Plus, the company is entitled to a new tax credit if it keeps the worker employed for at least 52 consecutive weeks.

These new breaks apply to qualified employees who begin working for your company after Feb. 3, 2010, and before Jan. 1, 2011.

Tax break No. 1: Skip a payroll tax liability

Normally, an employer must pay the 6.2% Social Security tax portion of the FICA tax on an employee’s wages up to a specified annual amount ($106,800 for 2010). The employer’s 1.45% Medicare tax portion of the FICA tax applies to all wages.

But the new law waives...(register to read more)

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{ 1 comment… read it below or add one }

scobby December 14, 2011 at 11:42 am

Businesses are abusing this tax credit. The government needs to put a stop to this. For the past two years the companies I have worked for have fired all of their staff after a year of employment. They cite frivolous reason but the companies are still doing it. And they are rehiring constantly. Nothing but turnover. I don’t believe reputable companies constantly turn over their entire staff every 6 months to a year nonstop.

They are getting the tax breaks and what they are really doing is laying people off at one time but lying to the unemployment office like the people are being fired when this is not true. What business can have 50% bad employees nonstop constantly that they have to constantly turn over their workforce?

The is directly affecting minorities too might I add.. And created a constantly shifting workforce of constantly displaced workers.

This law has had unintended consequences… bad ones especially in Texas where I live…

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