Time to Cash In on Phase II of the HIRE Act!

Posted on January 11, 2012

In March of 2010, the HIRE Act was signed into law giving employers a tax incentive to hire previously unemployed individuals (see our original article about the HIRE Act here for details regarding employee qualifications). There were two phases to the tax credits provided to employers:

Phase I included a payroll tax holiday on the employer's 6.2% share of the Social Security tax for all wages paid from March 19, 2010 through December 31, 2010.
Phase II included a retention tax credit for those new hires that were continuously employed for 52 weeks.

If you hired an employee that qualified for the tax credit in Phase I of the HIRE Act --- and that employee worked for at least 52 weeks, it’s time to cash in on your tax credit!! Clients who went through ESG to help them capture the tax credit in Phase I will be contacted by an ESG representative to help them obtain this second credit. Companies who claimed the Phase I credit on their own may want to consult with their tax advisors when filing their 2011 corporate tax returns to be sure they receive the due tax credit for Phase II.

For questions regarding the HIRE Act or your applicable tax credits, please contact your ESG Human Resources Consultant at 888-810-8187.

Posted in: Arizona, Colorado, Utah, Hot Topics, Human Resources, Employment, Compliance, Payroll, Tax Credits

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