Is your head spinning from all the new tax changes for 2010? If so, then you have a firm grasp on the situation.
But not all of the tax changes are bad for your business. Here’s one that can put money in your pocket.
Two new tax benefits may be available for your business as part of the Hiring Incentives to Restore Employment (HIRE) Act.
If you hire an unemployed worker this year (after Feb. 3, 2010 and before Jan. 1, 2011) you may qualify for a 6.2-percent payroll tax incentive.
Here’s how it works:
- Family members do not qualify.
- Household employees do not qualify.
- You must hire someone who has not worked more than 40 hours in the past 60 days.
- You don’t need to pay your share (employer share) of Social Security taxes on wages paid to the qualifying workers after March 18, 2010.
- Plus, for every worker retained for at least a year, you get a general business tax credit of up to $1,000 per worker on your 2011 income tax return.
- Qualifying employees need to file a Form W-11.
Want more tips like this? Join us on Tuesday, July 13, 2010 for the “Tax Law Update” coaching session. Sign up here Coaching