Employer Tax Credits in the Real World

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.

About Peter Porcupine