New Incentives for Employers to Hire Unemployed Workers

If you hire someone who was previously unemployed, or have recently done so, you probably qualify for a tax benefit.  Under a new federal program, employers who hire someone who was previously unemployed are not required to pay the employer share of social security for that employee.

Provisions of this program include:

·         Any employee hired after February 3, 2010 and after January 1, 2010 may qualify.

·         Employers are still required to withhold the employee share of social security.

·         Employers must have the employee sign an IRS form stating that they were unemployed during the 60 days before beginning work or, alternatively, worked no more than 40 hours for anyone during the 60-day period.

In addition, for each worker retained for at least a year, businesses may claim an additional general business tax credit of up to $1,000 per worker.

For more information, consult the IRS or your tax preparer.

http://www.irs.gov/businesses/small/article/0,,id=220745,00.html