I have the management of a small 4-person payroll. After listening to the President’s speech, I thought about how the last employer tax credit for hiring panned out.
Last September, I hired a person who was on unemployment for $24,000, making them elgible for the HIRE Act credit. The first part forgave the employer portion of taxes from March to December. In the September to December timeframe, this amounted to $600. Now, they recently satisfied the requirement that they be retained for 52 weeks, making the business elegible for a retention credit which is a percentge of annual payroll up to $1,000. The credit on this will be @ $500.
So – the annual credit on the $24,000 comes to about $1,100.
Is this so much money that I would rush out and hire even more people? Would it be worthwhile?
Or is it a benefit that’s sort of incidental, a happy coincidence for hiring a person at the right time?
You be the judge.