Business owners have been able to take advantage of the Hiring Incentives to Restore Employment Act of 2010 which allows employers to take advantage of incentives if they hire workers who have been unemployed for more than two months, or more specifically, 60 days. This act allows workers this incentive by exempting the Social Security payroll taxes employer must pay on new workers for the rest of 2010.
Also, employers may claim a tax credit of up to $1000 for each employee that is newly hired and is employed for one year. According to the Treasury Department website, “an employer is eligible to receive almost $3500 in tax savings for hiring an unemployed worker if the worker is paid $40,000 in salary this year.” It was also reported that between February and May around 4.5 million new workers who were unemployed for at least eight weeks were hired and businesses who hire these workers are eligible to take advantage of this HIRE Act.
Unemployment has been a major problem for many areas of our nation and economy over the past few months the job market is still struggling to open jobs at a rate that can compete with the unemployed men and women who are looking for employment. Yet, programs like this hiring incentive are something that many people believe is a step in the right direction. Many employers are hesitant to add new workers due to the fact that the cost of hiring a worker may not be affordable or easy if the amount of money that their businesses making can’t meet the costs of hiring. So, when a company can stand to actually make money from hiring an employee, more businesses who can afford to do so begin adding to their workforce.
Employers who may be considering adding new workers can still qualify for the Hiring Incentives to Restore Employment Act for the remainder of 2010. It’s hoped that this hiring incentive, along with similar programs, will be both proposed and enacted so that employers can start adding more jobs to the economy, unemployed men and women will regain some form of income, spending will increase, and the economic troubles that are being felt across our nation will begin to abate.