To help jump-start business hiring and investment, Congress passed, and the President signed, the Hiring Incentives to Restore Employment (HIRE) Act. The HIRE Act provides for payroll tax forgiveness and an employer income tax credit of up to $1,000 for qualified new hires. This provision may provide significant benefits to employers who previously laid off employees as a result of a lack of work or due to a change in the seasons. Employers who hire certain previously unemployed individuals may be eligible for a payroll tax holiday for the remainder of 2010 with regard to the employer portion of the 6.2% OASDI share of the FICA tax.
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