A new bill signed into effect March 18, 2010 offers employers two tax breaks for qualifying new employees hired in 2010. The first exempts companies from their share of Social Security payroll taxes, usually 6.2% of a workers wages, when they hire a new employee that was unemployed for at least 60 days prior. The second tax break gives companies an additional $1000 or 6.2% of the wages paid to the employee in 2010 (whichever is less) for each employee retained for a full year.
According to Obama, Section 179 was created to assist small business owners who might not want to hire on a new employee during these tough economic times. The legislation also extends provisions to allow small businesses to write off as much as $250,000 of their capital expenditure in 2010. To learn more about Section 179, click here or contact your qualified tax preparer to determine what tax credits may be available to you.