Growth5 Blog

Thursday, April 22, 2010

Hire Someone: Save up to $2k

You probably saw the news about the Hiring Incentives to Restore Employment (HIRE) Act that was signed into law last month.

We are looking to fill a couple positions this quarter so I looked at the HIRE Act more closely this week to see if it could help us. I think it can – potentially up to $2,000 per employee we hire between now and the end of 2Q, 2010.

There are more stipulations, but the basics are:
1. The new hire must have worked no more than a total of 40 hours over the 60 days prior to their hire date;
2. You can't hire them to replace the same position of someone you have laid off or fired without cause; and
3. The person being hired can't be a family member.
The $2,000 savings per employee would be over your 2010 and 2011 tax returns via the following two incentives:
a) the lesser of $1,000 or what is contributed to the new employee's OASDI (6.2%) between their hire date and December 31, 2010; and

b) the lesser of $1,000 or what is contributed to the new employee's OASDI (6.2%) on your 2011 return if they are still with the firm 52 weeks after they are hired.

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