2010 is the year to hire new employees

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For small business owners considering expanding their staff, 2010 is the year to do it.  The Hiring Incentives to Restore Employment (HIRE) Act signed into law on March 18, 2010 offers significant tax incentives for businesses who hire the unemployed.

In order to qualify, business owners must hire a candidate between Feb. 3, 2010 and Jan. 1, 2011.  The candidate must also have been unemployed or working less than 40 hours per week (for a different employer) for at least 60 days before being hired full time.

If the business owner hires a candidate who fits the above criteria, they will receive the following tax breaks:

• Exemption from the 6.2 percent Social Security payroll tax on employee paychecks after March 18, 2010.
• If the employee stays on the job for at least 52 weeks, the business owner can file for an additional $1,000 credit per qualifying employee.

The HIRE Act allows business owners to write off up to $250,000 invested in company equipment this year.  The provision is intended to give business owners the money they need now in order to grow in this struggling economy.

If you're planning on hiring a new employee, do some research to see if your business can also qualify for some of these tax incentives.  With such a high national unemployment, chances are good that you may qualify.  For more information and details on the HIRE Act, check out HIREAct.org and the IRS Q&A Web site.