Q. Our small company is rehiring a couple of workers we laid off. Can we claim the HIRE Act payroll tax exemption for these employees? A.G., Norfolk, Va.
A. Yes. The IRS web site says that the employment tax break under the Hiring Incentives to Restore Employment (HIRE) Act applies to rehires as long as they meet the tax-law requirements. But the exemption generally isn’t available if you’re rehiring a worker to replace another layoff (unless that person was let go for cause).
Tip: The same basic premise applies to the retention credit for previously unemployed workers.