Hire Act Bulletin

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March 2, 2010

Dear Members:

Congressman Thompson has asked us to poll our members concerning a provision in the pending jobs bill (the Hire Act) passed by the Senate last week.  Specifically, he wants to know if the tax provision would spur your business to hire new employees?

According to the Congressman's staff the provision would:
  • Provide businesses with an exemption from Social Security payroll taxes for every worker hired in 2010 who has been unemployed for at least 60 days.
  • The maximum value of this incentive is $6,621, which equals 6.2% of wages paid in 2010 up to the FICA wage cap of $106,800 – the longer the business has a new qualified worker on its payroll, the greater the tax benefit.
  • In addition, there would be an additional $1,000 income tax credit for every new employee retained for 52 weeks.

The House vote will be up sometime this week.  If you have any input on how this provision might be of benefit to your business (or not) please respond to Ms. Liz Murguia, liz.murguia@mail.house.gove with a cc to susan@eurekachamber.com.

Thanks,

J Warren Hockaday

 

The Greater Eureka Chamber of Commerce, 2112 Broadway, Eureka CA 95501
(707) 442-3738 (800) 356-6381