Rodman & Rodman, P.C., a firm of CPAs and Business Strategists based in Newton and Braintree, provides insight on the Hiring Incentives to Restore Employment (HIRE) Act, that carries hiring incentives and stimulus measures.
Last month, President Obama signed into law H.R. 2847, otherwise known as the HIRE Act.
Rodman & Rodman outline what the act means to employers who hire qualified unemployed workers:
Under the HIRE Act, employers are exempt from paying the employer share of Social Security employment taxes on wages paid in 2010 to newly hired, qualified unemployed workers. The payroll tax relief applies only for wages paid with respect to employment beginning March 19th and before 2011. There are stipulations though. It applies to workers who: (1) begin employment with the employer after February 3, 2010 and before January 1, 2011; (2) were previously unemployed and; (3) do not replace other employees of the employer.
Employers will receive an up-to-$1,000 tax credit for retaining qualified unemployed workers. The workers must be employed by the employer for a period of not less than 52 consecutive weeks, and their wages for such employment during the last 26 weeks of the period must equal at least 80% of the wages for the first 26 weeks of the period.
For tax years beginning in 2010, the Act boosts to $250,000 the maximum amount that can be expensed under Code Sec. 179, and boosts to $800,000 the beginning of the investment based phaseout amount.
The Act allows issuers of certain tax credit bonds to elect to receive a direct payment instead of a tax credit to the bondholder.
The Act enacts a comprehensive set of measures to reduce offshore noncompliance.
HIRE Act also delays the application of worldwide allocation of interest for an additional three years.
Large corporations should be aware that the HIRE Act tinkers with their estimated tax payments in future tax years.
Rodman & Rodman advises employers to check with their accountant(s) to ensure they have a thorough understanding of the provisions of the new law. To speak with a CPA at Rodman & Rodman,
Rodman & Rodman, P.C.
Founded in 1961, Rodman & Rodman, P.C. provides accounting, tax and business services to small and medium-sized companies throughout New England. With a focus on strategic planning, Rodman & Rodman goes beyond traditional accounting services and takes a proactive approach when serving clients to increase, preserve and sustain clients’ financial net worth.
From business valuations, taxation, audits, fraud detection and prevention services and succession planning to a variety of accounting IT services including software selection, implementation and training, the team at Rodman & Rodman serves as comprehensive advisors to clients. For individual clients, the company offers personal advisory services such as planning for real estate transactions, obtaining financing, estate planning and retirement planning as well as planning for college education. Rodman & Rodman Certified Public Accountants are located at 3 Newton Executive Park in Newton and 25 Braintree Hill Office Park in Braintree, Mass. For more information, visit their website at www.rodmancpa.com or contact (617) 965-5959.