HIRE Act Employment Incentives

The Hiring Incentives to Restore Employment Act (HIRE Act) recently passed by Congress includes three meaningful business tax breaks intended to boost hiring and lower the level of unemployment.

The HIRE Act extends by one year the generous $250,000 maximum for the so-called Section 179 deduction allowance, through tax years beginning in 2010. This deduction, named after the Internal Revenue Code section, allows business owners to expense equipment immediately rather than depreciate it over a period of years. The new law also extends the $800,000 equipment purchase threshold for the Section 179 deduction phase-out rule. Specifically, for tax years beginning in 2010, the maximum Section 179 deduction generally remains at $250,000 (versus only $134,000 before the new law). For tax years beginning in 2011, the maximum Section 179 deduction will fall all the way back to $25,000 unless Congress takes further action. Likewise, the phase-out threshold for the Section 179 deduction generally remains at $800,000 (versus only $530,000 before the new law). For tax years beginning in 2011, the phase-out threshold will fall all the way back to $200,000 unless Congress takes further action. Bottom line, the HIRE Act extends the Section 179 amounts that applied in 2009 through 2010.

Next, thanks to the HIRE Act, wages paid by a qualified employer to a qualified new employee with respect to employment between March 19, 2010, and December 31, 2010, are exempt from the 6.2% employer’s portion of the social security tax. There is no exemption for the employee’s 6.2% portion of the tax or the Medicare tax portion of the FICA tax. Individuals who pay self-employment tax are not affected.

Qualified employers basically include private-sector companies, tax-exempt not-for-profit organizations, and eligible public higher-education institutions. Qualified new employees are full-time or part-time workers who: (a) start work after February 3, 2010, and by no later than December 31, 2010, and (b) certify on Form W-11 that they were not employed more than 40 hours during the 60-day period ending on the start date. Although a qualified employee who begins work after February 3, 2010, can be eligible for the payroll tax holiday, the employer’s portion of the social security tax will only be forgiven for wages paid after March 18, 2010. Also, the new worker cannot replace another worker unless that person quit voluntarily or was discharged for cause.

Finally, above and beyond the temporary social security tax exemption explained above, employers can also claim a temporary new tax credit of up to $1,000 for wages paid to each qualified new employee, using the same definition as for the social security tax exemption. The new qualified employee credit is implemented via an increase to the employer’s general business credit.

There are some additional requirements for this credit. The worker must be kept on the payroll for at least 52 consecutive weeks, and wages during the last half of the 52-week period must equal at least 80% of wages paid during the first half of that period.

The new qualified employee credit equals the lesser of: (a) 6.2% of wages paid to the worker during the 52-consecutive-week period beginning on the date of hire or (b) $1,000. Therefore, to claim the maximum $1,000 credit, the worker must be paid at least $16,130 during the 52-week period. The credit can only be claimed for the tax year during which the 52-week requirement is first met for the worker. So, it’s a one-time deal for each eligible worker, based on wages paid to that worker during the 52-week period that starts with his or her employment date.

This information came courtesy of our friends at Hawkins, Ash, Baptie & Co.. Please contact them if you have questions about or require more information on these new hiring incentives.

Hot Jobs

The U.S. Labor Department has released its list of the ten fastest–growing job categories for the next decade. While there are several high skill positions on this list, manufacturing jobs are noticeably absent.

Here’s the top ten list with percentage increase for each. Does your community have the educational providers in place to meet demand?

Biomedical engineers: 72%
Network systems/data communication analysts: 53%
Home health aides: 50%
Personal and home care aides: 46%
Financial examiners: 41%
Medical scientists: 40%
Physician assistants: 39%
Skin care specialists: 38%
Biochemists and biophysicists: 37%
Athletic trainers: 37%

Source:
“Ten hottest jobs for the next decade” by Henry Unger. The Atlanta Journal–Constitution. December 11,2009.

Reasons Why You Should Find Local Part Time Jobs

This article was left as a comment on entry a few days ago and I thought the information was really good, so I’m setting it up as a post!!

Part time jobs can be great tools in life. No, they don’t usually offer benefits, 401K or insurance plans. No, they don’t offer a set 9-5 schedule Monday through Friday. No, they aren’t always careers that you wanted however, they offer a chance for people to make extra money outside of their full time job, they offer experience in careers that don’t have any full time opportunities at the time and they can give you the chance to get your foot in the door at a company you know you want to work for.

To find local part time jobs you should determine the purpose. If your looking for a job to make more money because you aren’t making enough during your full time work then considering the following opportunities. Being a server at a restaurant usually offers a flexible schedule, both morning, nights and weekends for 3-8 hour shifts depending on the establishment. The wages and tips combined make the extra few hours a week a generous addition to your financial situation. Many restaurants will provide training if you have never served before. Bar tending is a similar part time money maker if you are interested in making drinks.

If you are young, inexperienced or looking for ways to build your resume, you will want to work in establishments that are similar to your education focus. Many career opportunities are looking for candidates who have years of experience. So where do the inexperienced but otherwise qualified candidates fit in? The part time positions are perfect for those that don’t have much experience in the field but are willing to work the lesser paying job and less hours. To find local part time jobs that suit your long term goals, check company websites for opportunities or contact them with a request for part time work. It’s easier to locate part time work than full time work when you are inexperienced.

Do you know what company you want to work for? Do you realize how difficult it might be to get the exact position you want in the company? Sometimes its best to find local part time jobs at the company so that you have a foot in the door. Large companies often hire within. You will seem like the best candidate when your desired position opens up and they see that an employee within their company is qualified to handle it. Taking the cut in hours and pay is a long term investment.

the information is from www.findlocalparttimejobs.com