SUMMARY: The Hiring Incentives To Restore Employment (HIRE) Act was signed into law by President Obama on March 18, 2010. The Act primarily provides employers with incentives to hire and retain new employees. to encourage employers to hire new employees, the Act exempts a qualified employer from paying the employer's share of the social security employment taxes (6.2 percent of the first $106,800 of wages) for wages paid in 2010 for any new employee hired after February 3, 2010, and before January 1, 2011, if the new employee (1) was previously unemployed and (2) does not replace another employee of the employer. To encourage employers to retain these newly hired employees, the Act provides employers with a $1,000 income tax credit for every new employee they employ continuously for 52 weeks. Any qualified employer is entitled to claim the tax incentives.
Peter CapodiceCapodice & Associates
