The Internal Revenue Service (IRS) is providing small businesses with information about hiring incentives to restore employment, including details about the Hiring Incentives to Restore Employment Act (HIRE), enacted March 18, through a webinar that will be held on July 8. The webinar will explain tax-related benefits for small businesses.
Two new tax benefits are available to employers who hire certain previously unemployed workers, referred to as quality employees. The payroll tax exemption provides employers with an exemption from the employer’s 6.2 percent share of social security tax on wages paid to qualifying employees (effective for wages paid from March 19, 2010 through December 31, 2010).
Additionally, businesses will also be eligible for a general business tax credit (new hire retention credit) of 6.2 percent of wages paid to the qualified employee over the 52-week period, up to a maximum credit of $1,000.
For more information on the July 8 webinar, click here.