From AGC of America: The President signed into law the Hiring Incentives to Restore Employment (HIRE) Act that provides incentives for businesses to hire new employees and invest in property and equipment. The HIRE Act includes two new temporary incentives for employers to expand their workforces:
FICA Exemption: Employers will be exempt from paying their share of Social Security taxes on wages paid to qualified unemployed workers who begin employment with the employer after February 3 2010 and before January 1 2011.
Retention Tax Credit: Employers will receive a general business credit of $1000 for each qualifying employee that satisfied a minimum employment period.
AGC of America has received a number of questions from AGC members regarding the new law and whether certain employees would qualify them for the incentives. Currently the IRS is preparing the official guidance and forms for taxpayers to use to claim these incentives. In the meantime members of the AGC of America’s Tax and Fiscal Affairs Committee have suggested some resources that may be helpful. Click these links:
For more information please contact Karen Lapsevic of AGC of America at (202) 547-5433 or firstname.lastname@example.org.