Hiring Incentives to Restore Employment (HIRE) Act
The new legislation (H.R. 2847) signed by President Obama on March 18th, provides employers with a 6.2 percent payroll tax incentive for hiring workers who have been unemployed for at least 60 days. In addition, the bill provides a tax credit of up to $1,000 for each qualified new hire the company retains on its payroll for at least 52 consecutive weeks.
The Internal Revenue Service released notice IR-2010-33 on March 18, describing these tax benefits available to employers. The notice also advises the IRS is currently undergoing the development of an employee affidavit (form) signed “under penalties of perjury” that the individual has not been employed for more than 40 hours during the 60-day period ending on the date the individual began employment. Eligible employers will be able to claim the new tax incentive on revised employment tax form for the second quarter of 2010.
Further details including revised forms on the new tax provisions will be posted on the IRS.gov website over the next few weeks.
