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On March 18, 2010,
Another provision impacting employers is the Business Credit, which provides an income tax credit of up to $1,000 for every new employee hired under the HIRE Act and retained for 52 weeks. An employer that is already benefiting from the Work Opportunity Tax Credit (WOTC), however, may need to opt out of the HIRE credit if the WOTC benefits are greater. The HIRE Act also gives employers covered by the Railway Retirement Act (instead of FICA) a comparable tax holiday and retention arrangement.
As with any new law affecting employer taxes, the HIRE Act is somewhat complex in its administration. For a more detailed discussion of this new law and its tax implications, and guidance on how employers can best take advantage of these benefits, continue reading Littler's ASAP: HIRE Act Signed Into Law -- What it Means to Employers by GJ Stillson MacDonnell.