- Employers who hire unemployed workers from Feb. 4, 2010 to Dec. 31, 2010 may qualify for a tax break that exempts them from the employer's portion of Social Security (6.2%) on wages paid to workers after 3/18/10. This, however, does not include the employer's medicare tax portion. Employers can claim this benefit on the quarterly 941, starting with the 2nd quarter 2010 return.
- For each eligible retained employee, they must have worked for at least 52 weeks. The employer can claim an additional credit of the lessor of $1,000 or 6% of taxable wages on its 2011 income tax return. (The retained employee's wages for the last 26 weeks of that year must be at least 80% of the wages paid in the first 26 weeks).
Additional information:
- New positions only (not to fill pre-existing ones)
- New hires for existing positions do qualify for the tax benefit if they replace workers who voluntarily leave or leave with cause.
- Hired family members or relatives do not qualify
- Employer must obtain a statement (W-11) from each eligible new hire certifying that he or she was unemployed for 60 days before starting work or worked less than 40 hours during the previous 60 days.
