Hiring Incentives to Restore Employment (“HIRE”) Act
The Federal Government passed the Hiring Incentives to Restore Employment (“HIRE”) Act, Public Law 111-147 (HR 2847) on March 18, 2010. Here are a few highlights.
Section 101 provides a 6.2% Employer Social Security Tax Exemption (“Tax Exemption”) for each “qualified” employee hired after February 3, 2010 and before January 1, 2011, who certifies by signed affidavit that he or she has not been employed for more than 40 hours during the 60-day period ending on the date he or she begins employment.
Section 102 creates a Business Credit (“Retention Credit”) of either $1,000 for each “qualified” employee (as defined in Section 101), hired after February 3, 2010 and employed for at least 52 consecutive weeks, or 6.2% of wages paid to the “qualified” employee over the 52-week period, which ever is less.
Neither the Section 101 Tax Exemption, nor the Section 102 Retention Credit, is available if the employee is hired to replace another employee, unless the replaced employee was terminated for cause.
