This hiring must may be made from 3 February, 2010 to 1 January, 2011. The newly employed individual must had been unemployed for more than sixty days or had not worked for more than 40 hours with previous employee before he was employed.
Employers will also going to receive a tax relief if he hires the employee for a minimum period of 52 weeks. The tax relief will be allowed lesser than or equal to $1000, or it will constitute 6.2% of wage he will be paying to the new employee.
Employer cannot replace an employee by a more qualified employer until the previous employee has willingly shifted himself to another position. Employees who own more than 50% of the business cannot be held as employees. Employees who have been paid $106500, employer had to pay tax on his social security contribution.
Amendments in hire act
The business of the employer will not require paying 6.2% withholding tax for employees, who are hired between 3 Feb, 2010 and 1 Jan, 2011. All new employees should have been employed for at least sixty days as a requirement of this new amendment.
$1000 additional tax credit shall be allowed if the employees who are kept by the employers for the year 2011 which had been hired in 2010.
Benefits of this amendment
This step in the act will up build the economy, secure the employment, help in balancing the load of work in the businesses, uplift there life style and help employees to spent quality time with their child’s. Although there will be a problem regarding financing of new employees. But the benefits are more than this problem.
Read more: http://www.articlesbase.com/taxes-articles/obama-hire-act-tax-credit-3891135.html#ixzz18m6zU5WX
Under Creative Commons License: Attribution