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Businesses Can Save Money When Hiring New Employees

  • As a business owner you may now have an opportunity to either receive a payroll tax savings for the rest of 2010 on  employees you hire or take a tax credit against business income on your 2011 tax return.

    Save Money when Hiring New Employees

    The Work Opportunity Tax Credit offers business owners to take a tax credit against the income of the business if they hire an individual that is part of a “targeted group.”   Currently there are 11 differented targeted groups.  The Work Opportunity Tax Credit Guide includes the list of targeted groups along with the definitions and the amount of credit that you can obtain by hiring a new employee from one of these groups.

    The HIRE Act of 2010, aka ‘”The Jobs Bill”,   passed last month includes an opportunity for businesses to not have to pay the 6.2% employers portion of social security tax if they hire an individual that has not worked for more than 40 hours in the previous 60 days.  the employee will have to fill out and sign an affidavit to that effect.  This HIRE Act Guide of 2010 includes a more detailed summary of the Act and here is the HIRE Act affidavit that has to be filled out and signed.