More small businesses are taking advantage of the HIRE Act Tax Exemption, as evidenced by the most recent statistics from the Department of the Treasury.
According to the report, more than 8.1 million Americans who were unemployed for 60 days or more were hired by small businesses between February and August of 2010. Those businesses will now be eligible for tax exemptions and credits during filing season. Under the program, employers can exempt employee wages from their businesses' 6.2 percent share of Social Security payroll taxes for the rest of the year. Employers may also qualify for a $1,000 tax credit for each eligible employee who is retained for a one-year period.
"Targeted programs like the HIRE Act tax credit provide an incentive for private-sector employers to hire new workers sooner than they otherwise would," said Treasury Department chief economist Alan Krueger. "Since it's only in effect through the end of the year, the HIRE Act encourages businesses to accelerate hiring in order to get the maximum benefit from this temporary tax credit."
The government has established a number of programs and tax incentives aimed at boosting the economy and providing tax breaks to Americans since the onset of the recession. Consumers should speak with their tax preparer regarding their eligibility for new tax benefits.
Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.