IRS Issues Affidavit Form for HIRE Act Benefits

Originally published April 15, 2010

Earlier this month, two new tax benefits became available to employers hiring workers who were previously unemployed or only working part time. These provisions are part of the Hiring Incentives to Restore Employment Act (the "HIRE Act") enacted into law on March 18.

Employers who hire unemployed workers after February 3, 2010 but before January 1, 2011 can qualify for a 6.2-percent payroll tax incentive - the equivalent of an exemption from the employer's share of Social Security taxes on wages paid to these workers in 2010.  In addition, for each worker retained for at least a year, businesses may claim an additional general business tax credit, up to $1,000 per worker, when they file their 2011 income tax returns.