On March 18, 2010, President Obama signed into law the Hiring Incentives to Restore Employment Act (HIRE). Here’s the basics:

As an employer, you will be exempt from paying the employer portion of SS taxes for the remainder of the year on new hires who were previously unemployed. To qualify, the employee must be hired between 2/3/10 and 1/1/11, cannot have worked more than 40 hours during the previous 60 days, is not hired to replace another employee unless the previous employee voluntarily left or was let go for cause, and is not a family member.

You claim the credit on your 941 starting in the 2nd quarter.

There is also a business tax credit for retaining these qualified employees. The credit is the lesser of $1,000 or 6.2% of the wages paid during the first 52-week retention period. Wages paid in the second 26-week period must be at least 80% of the wages paid in the first 26-week period.

We are here to assist you in taking advantage of this benefit and to help you comply with the requirements.