Time is running out on a tax credit many corporations have missed. The Federal HIRE Act enacted March 18, 2010 benefits businesses that hired workers who were previously unemployed. The benefit gives the business a payroll tax credit of 6.2 percent. This applies to any new hires that your business employed from February 4, 2010 through December 31, 2010 that were not working for 60 days before their start date.
The new hire is asked to sign a statement certifying that for the 60 days prior to starting work, he or she worked less than 40 hours in total. Employers can save up to $6,622 per qualifying worker with no limit to the number of workers.
In addition, any worker retained for a year will generate up to an additional $1,000 for each worker or 6.2 percent of wages paid to the individual (whichever is less) in business tax credits on your 2011 income tax return.
More Details on the HIRE Act: www.irs.gov/businesses/small/article/0,,id=220745,00.html
Additional tax tips: www.nacsonline.com/NACS/News/Daily/Pages/ND1119107.aspx