Only a few months remain to cash in on the HIRE Act

Overheard from the HR Idiot: “I’m trying to cash in on this HIRE Act, there are some awesome tax breaks! Turns out you need documentation. Duh!

Oh, the HR Idiot is so crafty! But here’s what he needs to know to get started:

If you are hiring previously unemployed workers, you may be eligible for two tax breaks. The Hiring Incentives to Restore Employment (HIRE) Act was passed into law on March 18, 2010. The two tax benefits are:

  1. If you hire unemployed workers this year (February 3, 2010 through January 1, 2011), you may qualify for a 6.2 percent payroll tax incentive.
  2. For each new employee retained for at least a year, you may claim an additional general business tax credit (up to $1,000 per employee, when they file their 2011 income tax returns).

But not every applicant hired will qualify the employer for tax breaks. He or she must be a “qualified employee.” In addition, you must be a “qualified employer.” But what does that mean?

Our partners at Fisher & Phillips LLP have unpacked this important topic to break down how you can take advantage of these tax benefits. To read “The HIRE Act: Who, What and How,” click here.

In order to claim this tax benefit, you must have a signed statement from the employee certifying that they have not worked more than 40 hours within 60-days prior to the hire at your company. The IRS issued Form W-11 that will help you fulfill this requirement. Download the form by clicking here.


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