Businesses that hire new workers maybe able to take advantage of the Hiring Incentives to Restore Employment Act which was begun in March. These tax benefits are hoped to prompt more employers to hire workers who have been unemployed for 60 days or more. Employers that take advantage of this Act will be able to claim an exemption from paying their share of Social Security taxes on wages to these new employees and if these businesses retain these workers for a year they may qualify for another credit of up to $1000.
The small business sector has been called on to help add new jobs, but small companies and large alike, have been hesitant to do so due to the fact that they feel the economy has not yet reached that point which is stable enough for these companies to hire and retain workers. Many businesses feel that there is not enough capital being pumped into the economy so that it would be profitable, which is troubling because more spending could be created if more individuals had a job.
Unemployed men and women have been struggling to make ends meet with the income they have gained from unemployment benefits, but this income, while it is often put back into the economy, is not enough to get our economic system back to full strength. Also, some businesses have claimed that they want to hire new workers but they cannot get the access capital from business loans to do so.
It’s hoped that this new hiring incentive will prompt more businesses and workers as they can save money and, if they keep their workers, make money as well. Many people are arguing that lenders need to provide access to capital for these businesses to hire, and there are analysts who say that businesses should use this tax credit due to the fact that if businesses do not hire unemployed workers then millions of men and women who are without a job cannot be an asset to our economy. This, obviously, is creating a big problem since our economic condition cannot improve if people are unemployed and businesses who are waiting for the economy to grow stronger before they hire are actually one of the causes of our slow economic growth.
Again, this hiring incentive to should save employers money if they add new employees to their workforce, which is hoped to cause more businesses to increase their hiring, which will be beneficial to our economy.