That’s right, pros. We’ve been so caught up in health care reform that I’ve barely touched on the HIRE Act (Hiring Incentives to Restore Employment) and what it means for you.
Signed by President Obama in the same week as the Patient Protection and Affordable Care Act, the laws show how the government giveth and the government taketh away.
While I know many of you are concerned about what reform will take from your health plans (and budgets), the HIRE Act offers some pretty decent tax credits that I know you wouldn't turn down. Courtesy of EBN’s resident legal eagle Frank Palmieri, here’s what the government giveth under HIRE:
“An exemption from paying the employer share of Social Security tax (6.2% on first $106,800 of wages) for 2010 wages paid after March 18, 2010 for employees hired after February 3, 2010, and before January 1, 2011, who were unemployed for at least 60 days before being hired. This credit is available without any income caps. Thus, whether an employer hires a CFO with an annual salary of $200,000 per year or an individual earning $30,000, the credit is available. The employee must certify that they have not worked more then 40 hours during a 60 day period before beginning employment.
“A $1,000 tax credit for each new employee hired after February 3, 2010 and before 2011 who remains employed for at least 52 weeks (unless 6.2% of wages over the 52 week period is less than $1,000, in which case the credit is the lower amount).
“Neither the 6.2% tax exemption nor the tax credit applies if an individual is hired to replace another employee, unless the employee voluntarily terminated employment or was terminated for cause.
“The Act also puts in place several international reforms intended to increase reporting of the taxable foreign income of U.S. residents. The highlights of these changes include establishing new rules to encourage foreign entities to report U.S. owners and investors and requiring individuals with an investment of more than $50,000 in a foreign financial institution or a foreign company to report the investment on their federal income tax return. These foreign issues must be considered with regard to foreign assignments and transfers.”
What are your thoughts on HIRE? Let me know in the Comments.
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