LEGAL UPDATE – From Bob Style NAPS Attorney.
HIRE Act provides tax incentives for hiring the unemployed
The Hiring Incentives to Restore Employment Act (“Hire Act”) is a recently enacted federal law which provides certain tax benefits to those employers who hire the unemployed. It may be of interest to those engaged in temporary staffing, as well as to clients of placement firms.
The first tax credit applies to employers who hire the unemployed at some point between February 3, 2010 and January 1, 2011. The credit is for an amount equal to the employer’s portion of the social security tax.
The employee must complete and file with you an IRS form (W-11) in which he or she states, under penalties of perjury, that the employee has worked less than 40 hours in the most recent 60 day period. The employee cannot be hired to replace another employee who was terminated without cause, and cannot be related to anyone owning at least a 50% interest in the employer.
If the employer keeps the employee on the payroll for 52 consecutive weeks, and the employee earns in the second 26 weeks of the period, at least 80% of the earnings for the first 26 weeks, then the employer becomes eligible for a $1,000 tax credit in 2011.
This information was provided by NAPS through Bob Styles Legal Updates email.