In March, enactment of two health care reform laws overshadowed signing of another economic stimulus bill. On March 18, 2010, President Obama signed the Hiring Incentives to Restore Employment (HIRE) Act (P.L. 111-147). The stimulus highlight is a payroll tax exemption (Social Security only) for employers who hire a new worker this year. This is an interesting policy approach for a few reasons. For example, a payroll tax credit benefits more employers that would an income tax credit. The payroll tax credit will benefit employers with a taxable loss and non-profits.
There is more in this stimulus bill, namely some significant new foreign reporting and withholding rules. So, all in all, more to keep tax advisers well-employed.
I've got a short article in this week's AICPA Tax Insider on the employer benefits in HIRE and some policy considerations of the approach and the Act - here.
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4 comments:
Tax exemptions are good means to save company money. I liked this stipulation of the economic stimulus package since it benefits payroll tax services and it opens employment opportunities for other citizens.
This tax exemptions must be accurately included in the tax declarations of companies. An effective payroll (Utah) firm can assist in preparing such documents to make the task easier for the business owner.
In this case, company managers providing payroll processing service should learn about this legislation. In our place here in Denver, many payroll Colorado-based services took notice of the Payroll Tax Exemption law.
The HIRE ACT is something that small businesses can look forward to, if they hire employees who have been unemployed. In that case, business owners should remind their small business payroll services providers about the HIRE ACT for consideration in preparing the employees' payroll. It's also good if they apply the services of one of the best online payroll services providers in the area because these people know about the HIRE ACT.
This new Act has helped us in the industry of small business. Payroll service nowadays is just a matter of ease and easy task. No more overnights on manual computation because of existing computerized outsourcing payroll softwares.
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