The HIRE Act - Why Now is the Time to Hire

Updated: August 04, 2010

A social security exemption is part of this new act, as long as the new employee was previously unemployed. How long must someone have been unemployed in order to qualify for the exemption? At least two months out of work is a necessary requirement. The exemption is a cushy 6.2 percent, making companies eager to bring on new employees as well as hire staffing agencies and contingency firms to make sure the candidates they bring on are the right fit… and will stick around.

In addition to the social security tax exemption, an income tax credit is available. This is referred to as the ‘retention credit'. The newly hired employee must remain with the organization for at least a year or this is no longer applicable, and the fifty-two weeks must be consecutive. This tax credit will be 6.2 percent of the newly hired employee's wages up to a maximum amount of a thousand dollars. Replacement positions do not qualify. No firing and hiring here- new hires qualify only, with some exceptions to the rule.

The maximum amount a company can save is $6,622 per new hire- a pretty significant number. It is wise for a company to let their recruiters know that they are partial toward these benefits, so that the recruiter knows to have an eye out for the unemployed candidates currently on the market.

Featured Research
  • Best ERP Features and Benefits for Your Business

    Are you considering investing in ERP software for the first time? Or maybe you already have an ERP solution but you’re worried it’s becoming dated. If either of the above apply to you, read our latest guide on the top ERP features and benefits based on the size of your business. You may be surprised at how versatile and cost-effective it is becoming - regardless of if you own a small business or run a large enterprise. more

  • 9 Spooky Signs You Need a Contact Center Upgrade

    When was the last time you evaluated the performance of your current contact center and the software you are using? The results may be frightening! If it’s been awhile since you invested in contact center software, there is a good chance that your needs have changed or that there are better options available now. Fortunately, it’s relatively easy to determine if you need an upgrade or not. more

  • 7 Ways the Wrong Phone System Can Haunt Your Business

    The wrong phone system could be haunting your business - and we’re talking about problems more serious than ghosts and ghouls. From increased costs to issues with scaling, we’ve identified seven important ways that a less than ideal phone system could be holding you back. You’ll be surprised at how much of a difference this can make to your bottom line too. more

  • Ditch Your Fax Servers

    An in-house fax server gives an IT department centralized management and monitoring over the entire enterprise's faxing. This can help your company track usage and better maintain records for auditing and record keeping. However, there are serious drawbacks that come with utilizing an in-house fax server solution and these range from security to cost-prohibitive pricing. more

  • The IT Manager's Survival Guide

    As an IT manager, maintaining physical fax servers and infrastructure is not a high priority. However, fax capability remains a business need simply because chances are your industry is dependent on its security. What if there was a way to reduce the amount of time spent handling fax complaints and maintaining physical servers? And this way took into account security, cost savings, and freed up your IT resources. Would you be interested? more