I have been hearing from a few clients that they are looking at hiring again as business has picked up for them.  I often remind them of the New HIRE Act and they usually look at me wide eyed with that glossy sheen over their eyes showing me they do not know what I am talking about.

So, I thought I would share with you just to let you know there are tax incentives out there for business owners who hire new workers.  Basically, if you hire a new employee who has not been employed 40 hours for 60 days before you hired them, you will be exempted from paying the 6.2% of their Social Security Tax.  That could add up to thousands of dollars per new  employee.

In addition, if the new hired employee is still employed with you for a year you will get a $1,000 retention credit per new hired worker. Not too bad.

Here are a few points and details to the plan.  You will have to have an employee fill out a W-11 Form.

• Employees must not be employed 40 hours for the previous 60 days from once you have hired them.
• Employee must be hired between February 3rd, 2010 and January 1, 2011.
• Cannot be someone related to you.
• You cannot terminate someone just to hire a new employee to take advantage of this program.