Tax Benefits Aid Employers That Hire and Retain Unemployed Workers!

Employers that hire unemployed workers this year (after Feb. 3, 2010 and before Jan. 1, 2011) may qualify for a 6.2-percent payroll tax incentive, in effect exempting them from their share of Social Security taxes on wages paid to these workers after March 18, 2010.  This reduced tax withholding will have no effect on the employee's future Social Security benefits, and employers would still need to withhold the employee's 6.2-percent share of Social Security taxes, as will as income taxes.  The employer and employee's shares of Medicare taxes will also still apply to these wages.

The new employee must meet several criteria to considered a "Qualified Employee" under the HIRE Act.  For complete details on the HIRE Act's provisions refer to this section of the IRS web site: IRS HIRE Act

Businesses using a payroll service powered by Primepoint should download this form to report "Qualified Employees" to ensure that the business receives their proper credit.  The form includes the criteria that is necessary for an employee to be consider "Qualified."