What is the Hiring Incentives to Restore Employment Act of 2010?
The Hiring Incentives to Restore Employment Act of 2010 (HIRE Act), signed into law on March 18, 2010, provides payroll tax breaks and incentives for businesses to hire unemployed workers.
Pursuant to the HIRE Act, qualified employers are exempt from paying the employer's share of the social security employment taxes (6.2 percent of the first $106,800 of wages) for wages paid in 2010 for any new qualified employees.
A qualified employer is any employer other than the United States, any state or any political subdivision thereof. However, an employer that is a public institution of higher education is deemed a qualified employer.
Qualified employees are individuals who begin employment with a qualified employer after February 3, 2010, and before January 1, 2011, who have either been unemployed for at least 60 days prior to hire or worked fewer than 40 hours for another employer during the previous 60 days. Furthermore, a qualified employee cannot be a family member of the employer and cannot replace another employee of that employer (unless that other employee voluntarily separated from employment or was terminated for cause).
In addition, qualified employers receive a general business income tax break if the employer continues to employ the new hire for at least 52 weeks. The tax break is the lesser of $1,000 or 6.2 percent of wages paid to the new employee during the 52-week period.
If you are unsure whether your new employee is covered under the HIRE Act, please consult with a New York City employment lawyer.
